A $57 000, 9.3% bond is purchased 5 years before maturity to yield 2.2% compounded semi-annually. The bond interest is payable semi-annually.

How should we expect this bond to sell?

a.

At par Premium (bond rate = 9.3% = 2.2% = market rate)

b.

Discount (bond rate = 9.3% > 2.2% = market rate)

c.

Premium (bond rate = 9.3% < 2.2% = market rate)

d.

Discount (bond rate = 9.3% < 2.2% = market rate)

e.

Premium (bond rate = 9.3% > 2.2% = market rate)