You are offered a $1,000 par value bond which has a stepped-up coupon interest rate. The annual coupon rate is 10 percent coupon, payable semiannually ($50 each 6 months) for the first 15 years, and then the annual coupon increases to 13 percent, also payable semiannually, for the next 15 years. The first interest payment will be made 6 months from today, and the $1,000 principal amount will be returned at the end of Year 30. You currently have savings in an account which is earning a 9 percent simple rate, but with quarterly compounding; this is your opportunity cost for purposes of analyzing the bond. What is the value of the bond to you today?

	a.	$1,614.53
	b.	$1,155.98
	c.	$1,306.21
	d.	$1,250.25
	e.	$1,419.18

Financial Calculator Section The following question(s) may require the use of a financial calculator. bollowing question(s) may require euth6 mno You are otlered a $1,000 par value bond which has a stepped-up coupon interest rate. The annual coupon rate is 10 percent coupon, payable semiannually ($50 each 6 months) for the first 15 years, and then the annual coupon increases to 13 percent, also payable semiannually, for the next 15 years. The first interest payment will be made 6 months from today, and the $1,000 principal amount will be returned at the end of Year 30. You curently have savings in an account which is earning a 9 pencent simple rate, but with quarterly compounding, this is your opportunity cost o purposes ol analyzing the bond. What is the value of the bond to you today? h a. $1,614.53 b. $1,155.98 o c. $1,306.21 d, $1,250.25 e.$1,419.18