Question $10$

You would like to buy a semiannual compounding $10-$year, $$1,000$ par value bond. The yield

to maturity of this bond is $12$ percent. If the annual coupon rate of the bond is an $8\mathrm{.}5$

percent, what is annual coupon dollar amount? In addition, what is the value of the bond?

$$42\mathrm{.}50$;$$799\mathrm{.}28$

$$85$;$$799\mathrm{.}28$

$$85$;$-$$$799\mathrm{.}28$