Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of 1,000, 13 years to maturity, and a coupon rate of 8 percent paid annuallly. If the yield to maturity is 10 percent, what is the current price of the bond?

Multiple Choice

• 1,030.00

• 1,162.08

• 857.93

• $815.04

• 900.83