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Summit Energy issued a 20-year 6.5% coupon bond in January of 2013. The bond makes semi-annual coupon payments and has a par value of $1,000.

Summit Energy issued a 20-year 6.5% coupon bond in January of 2013. The bond makes semi-annual coupon payments and has a par value of $1,000. Calculate the bonds price in January of 2020 if annual yield to maturity is 8.5%.

a.

1087.31
b.

905.00
c.

844.44
d.

917.86

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