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Assume that you are considering the purchase of a 1 2 - year bond with an annual coupon rate of 3 . 5 % .

Assume that you are considering the purchase of a 12-year bond with an annual coupon rate of 3.5%. The bond has face value of $1,000 and makes semiannual interest payments. If you require an 12.0% nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond?
a.1,000.00
b.466.61
c.583.26
d.699.91
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