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Assume that you are considering the purchase of a 15-year, noncallable bond with an annual coupon rate of 9.0%. The bond has a face value

Assume that you are considering the purchase of a 15-year, noncallable bond with an annual coupon rate of 9.0%. The bond has a face value of $1,000, and it makes semiannual interest payments. If you require a 12.4% nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond?

a. $808.52

b. $770.92

c. $473.24

d. $837.03

e. $734.03

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