1.A $1,000,000 bond bearing interest at 4% payable quarterly is bought ten years before maturity to yield 6% compounded semi-annually. If the bond is redeemable at par, what is the purchase price?

a.

$854,225.25

b.

$853,440.38

c.

$851,225.25

d.

$844,215.50

e.

$852,225.25