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Moerdyk Corporation's bonds have a 10-year maturity, an 11.25% semiannual coupon, and a par value of $1,000. The going interest rate (r d ) is

Moerdyk Corporation's bonds have a 10-year maturity, an 11.25% semiannual coupon, and a par value of $1,000. The going interest rate (r_d) is 9.00%, based on semiannual compounding. What is the bond's price?

a. $1,209.38

b. $1,179.27

c. $1,089.02

d. $1,146.34

e. $1,144.40

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