Bonds can be priced using the bond pricing formula:

A 15 year bond was just issued that pays coupons annually. The coupon rate is 6 percent per annum, the yield is 4 percent per annum and the principal is $100.

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

Select one:

a. T should be 15.

b. r should be 0.04

c. C should be $4.

d. F_T should be $100

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