Your broker offers to sell for $1,085 a AAA-rated bond with a coupon rate of 4 percent and a maturity of ten years. Given that the interest rate on comparable debt is 3 percent, calculate the bond's price. Assume that the bond pays interest annually. Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar.

$

Is your broker fairly pricing the bond?

-Select-YesNoItem 2 , so the bond -Select-shouldshould notItem 3 be purchased.