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You want to include bonds in your investment portfolio. You are looking at a bond that pays monthly coupons with a stated coupon rate of

You want to include bonds in your investment portfolio. You are looking at a bond that pays monthly coupons with a stated coupon rate of 4.32%. The face value of the bond is $1000 and the bond matures in 25 years. If you want to earn 6% (YTM), what is the most you would be willing to pay?

a. $782.71
b. $783.87
c. $785.24
d. $1,256.57

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