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Claire Redfield is considering the purchase of a 20 year non-callable bond with a coupon rate of 8.50%. The bond has a face value of

Claire Redfield is considering the purchase of a 20 year non-callable bond with a coupon rate of 8.50%. The bond has a face value of $1,000 and it makes SEMIANNUAL coupon payments. If the required yield to maturity on this investment is 7.20%, what is the maximum price that should be paid for this bond today? (Ch. 7)

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$692.28

$966.18

$1,079.85

$1,136.68

$1,182.15

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