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, 7 years to maturity, and a coupon rate of 7 percent paid annuallly. If the yield to maturity is 9 percent, what is the current price of the bond?

Multiple Choice

• 1,111.79

• 944.31

• 899.34

• $854.37

• 1,030.00