Problem:
A 6-year bond which pays 8 percent interest semiannually sells at par ($1,000). Another 6-year bond of equal risk pays 8% interest annually. Both bonds are non-callable and have a face value of $1,000.
Required:
Question: What is the price of the bond which pays annual interest?
a.) $689.08
b.) $980.43
c.) $712.05
d.) $992.64
e.) $986.72
Note: Please provide full description.