A 10-year bond has a face value of $5000 and was issued on May 1 2015 with

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Question:

A 10-year bond has a face value of $5000 and was issued on May 1 2015 with a bond rate of 8.2% compounded semi-annually. If the bond was purchased on May 1 2019 at a market rate of 8.6% compounded semi-annually, what was the purchase price of the bond?

Select one:

a. $4933.50

b. $4531.30

c. $4907.76

d. $4948.09

e. $4513.30