Victoria Treasury has issued 30-year bonds that pay semi-annual coupons at a rate of 8.90 per cent. The current market rate for similar securities is 11.50 per cent. What is the bond's current market value? (The bond's face value is $1,000).

Question 11 options:

1)

$781.18

2)

$781.81

3)

$187.81

4)

$881.81