What is the current market value of a bond that has a required rate of return of 10% per annum and pays $50 per annum with only two years remaining to maturity, if the face value of the bond is $1,000 and the required rate of the bond a short time after it was first issued eight years ago was 6% per annum? A) $1,421.80 B) $981.67 C) $913.22 D) $826.45 E) None of the above.

Please give formula that is used and detailed solutions

What is the current market value of a bond that has a required rate of return of 10% per annum and pays $50 per annum with only two years remaining to maturity, if the face value of the bond S $1,000 and the required rate of the bond a short time after it was first issued eight years ago was 6% per annum? A) $1,421.80 B) $981.67 C) $913.22 D) $826.45 E) None of the above