What should the price for the bond be

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Question 1: A bond is trading on the secondary market and will mature in 10 years. The bond has a face value of R1,000,000 that will be paid at maturity. Furthermore, the bond pays an annual coupon at 9%. What should the price for the bond be if investors are looking for a 12% return on their investment?

Option 1: R1,192,530

Option 2: R830,490

Option 3: R827,950

Option 4: R508,520

Option 5: None of the above

Reference no: EM132508789

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