Chesterton, Inc.wants to sell you a5.0 percent annual coupon bond that makes semiannual payments.Your required return on the bond is5.90 percent annually with semi-annual compounding, and the bondmatures in 10 years. How much would you pay for the bond givena $1,000 face value?

A) $932.74

B) $1,306.40

C) $1,559.08

D) $1,373.66

E) $986.68