You are considering the purchase of a 20-year, non callable bond with a coupon rate of 9.0%. The bond has a face value of $1,000, and it makes semi annual interest payments. If you require an 12% nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond?
1. $699.07
2. $811.92
3. $891.95
4. $774.31
5. $916.50