A 7% Commonwealth government bond has three years to maturity. Given that the bond pays interest semi-annually(o.r.twice a year) and an interest payment has just been made, what is the present value of the bond if the market interest rate is 9% and the face value of the bond is $100 000?

a. $94 842.13

b. $88 693.18

c. $105 875.28

d. $101 522.78