A bond has a face value of $4000 and matures on June 21 2025 with a bond rate of 6.2% compounded semi-annually. If the bond was purchased on December 21 2019 at a market rate of 6.9% compounded semi-annually, what was the purchase price of the bond? Draw a timeline in your notes to help you practice!

Select one:

a.

$3855.31

b.

$3903.56

c.

$3883.27

d.

$3873.63

e.

$3864.31