What is the expected price of the following bond?
Par value: $1,000
Years to maturity: 30 years
Coupon rate: 8% paid semiannually
Beta: 0.1
Assume:
Risk-free rate: 4%
Market risk premium: 5%
Select one:
a. $1,590.22
b. $1,582.07
c. $1,566.22
d. $1,573.11
e. $1,552.98