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On 4 February 2010 a company issued a bond with a face value of $500,000 that...

On 4 February 2010 a company issued a bond with a face value of $500,000 that matures exactly 25 years later. The coupon rate is 5% p.a. compounded half-yearly. What is the bond's value on 4 February 2018 assuming the market yield is 8% p.a. compounded half-yearly.

a. $230,139.97

b. $670,428.40

c. $408,757.48

d. $361,916.02

e. $363,175.43

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