The Cougar Corporation has issued 20-year semiannual coupon bonds with a face value of $1,000. If the annual coupon rate is 10% and the current yield to maturity is 12%, what is the firm's current price per bond?

A) $850.61
B) $849.54
C) $1,170.27
D) $1,171.59

Answer: B
Explanation: B)
Bond Price = PMT × +
= $50 × + = $849.54.
MODE = END, P/Y = 2, C/Y = 2
INPUT 40 12 ? -50 -1,000
KEY N I/Y PV PMT FV
CPT 849.54