An investor just purchased a 10-year, $1,000 par value bond. The coupon rate on this bond is 8 percent annually, with interest being paid every six months. If the investor expects to earn a 10 percent simple rate of return on this bond, how much should the investor pay for it?
A. $1,122.87
B. $1,003.42
C. $875.38
D. $950.75
E. $877.11
Answer: C
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