A government bond with a face value of $500,000 was issued eight years ago and there are seven years remaining until maturity. The bond pays semi-annual coupon payments of $22,500, the coupon rate is 9% p.a. paid twice yearly and rates in the marketplace are 8% pa compounded semi-annually. What is the value of the bond today?

a.

$526,407.81

b.

$500,000.00

c.

$408,888.52

d.

$516,831.86

e.

$529,130.74