Bonds can be priced using the bond pricing formula:

A 10 year bond was just issued that pays coupons every 6 months. The coupon rate is 5 percent per annum, the yield is 6 percent per annum and the principal is $100.

Which of the following statements about the numbers that should be input into the bond pricing formula is NOT correct? You do not have to price the bond, just state which inputs are not correct.

Select one:

a. T should be 20.

b. r should be 0.025

c. C should be $2.50.

d. F_T should be $100

e. The current price P₀ will be less than $100.