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

A $2,500 bond had a coupon rate of 6.60% with interest paid semi-annually. Cody purchased this bond when there were 7 years left to maturity and when the market interest rate was 8.10% compounded semi-annually. He held the bond for 3 years, then sold it when the market interest rate was 3.50% compounded semi-annually.
Calculate the purchase price of the bond.
a.
$2,292.26
b.
$2,302.59
c.
$1,434.01
d.
$868.59

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