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A $ 1 , 5 0 0 bond had a coupon rate of 5 . 4 0 % with interest paid semi - annually. Andrew

A $1,500 bond had a coupon rate of 5.40% with interest paid semi-annually. Andrew purchased this bond when there were 9 years left to maturity and when the market interest rate was 7.30% compounded semi-annually. He held the bond for 4 years, then sold it when the market interest rate was 3.20% compounded semi-annually.
Calculate Andrew's selling price.
a.
$1,279.84
b.
$1,382.38
c.
$1,651.36
d.
$371.53

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