Question: A $ 2 , 5 0 0 bond had a coupon rate of 6 . 5 0 % with interest paid semi - annually. Cody

A $2,500 bond had a coupon rate of 6.50% with interest paid semi-annually. Cody purchased this bond when there were 7 years left to maturity and when the market interest rate was 7.50% compounded semi-annually. He held the bond for 2 years, then sold it when the market interest rate was 3.50% compounded semi-annually.
Calculate the purchase price of the bond.
a.
$2,358.56
b.
$2,365.75
c.
$872.59
d.
$1,493.16

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