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Moerdyk Corporation's bonds have a 20-year maturity, a 7.45% semiannual coupon, and a par value of $1,000. The going interest rate (r d ) is

Moerdyk Corporation's bonds have a 20-year maturity, a 7.45% semiannual coupon, and a par value of $1,000. The going interest rate (r_d) is 5.20%, based on semiannual compounding. What is the bond's price?

a. $1,275.71

b. $1,277.71

c. $1,173.73

d. $1,323.18

e. $1,301.62

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