You would like to buy a semiannual compounding 10-year, $1,000 par value bond. The yield to maturity of this bond is 12 percent. If the annual coupon rate of the bond is an 8.5 percent, what is annual coupon dollar amount? In addition, what is the value of the bond?

$85; $799.28 $85; -$799.28 $42.50; $799.28 $42.50; -$799.28