Question: 4. Total for this question: 2 marks A $10,000, 8%, 5-year bond pays fixed interest of $400 every six months. The current market rate of

4. Total for this question: 2 marks A $10,000, 8%, 5-year

4. Total for this question: 2 marks A $10,000, 8%, 5-year bond pays fixed interest of $400 every six months. The current market rate of interest is 6%. Required: 1. What is the present value of the bond? (Round to nearest dollar). A. $10,004 B. $10,882 C. $10,852 D. $10,054 2. Give two components of the total present value of the bond, you have chosen

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