Assume Alice is considering buying the bond described below:

• Years to maturity = 10
• Par value = $1,000
• Annual coupon rate = 8 percent annually, with interest being paid every 6 months.

If Alice expects to earn a 10 percent rate of return on this bond, the most she should pay for the bond is closest to:

	a.	$1,122.87
	b.	$875.38
	c.	$1,003.42