Assume that a 15-year, $1,000 face value bond pays interest of $37.50 every 3 months. If an investor requires a simple annual rate of return of 12 percent with quarterly compounding, how much should the investor be willing to pay for this bond? (Round the answer to two decimal places.)?
A. ?$821.92
B. $1,207.57?
C. $986.43?
D. $1,120.71?
E. ?$1,358.24
Answer: B
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