Exactly 12 years ago, you paid 10,000 to buy a Maple Hydro bond with a face value of $10,000 that matures in 20 years and has a coupon rate of 4.8% payable semi-annually.You would like to sell your bond today. What is the expected value of the bond if the interest rate of a similar bonds is 5% compounded semi-annually?

a)

$9,869.45

b)

$9,821.15

c)

$3,133.20

d)

$13,002.65

e)

$8,613.11

Please see the attached formulas sheet to assist with solving this problem.

No super detailed explanationneeded, please just select the correct answer.

Formulas and Calculator Instructions Provided PMT = PV xi PV PMT PV xi PMT PMI OF PV Dye PMT 1+/ FV = PV(1+1)" FV PV = (1+1)" To switch between payments at the beginning/end of the interval: . Press 2ND BGN (above the PMT key). The display should show END or BGN. . Press 2ND SET (above the ENTER key). The display should show BGN or END. Press CE/C (bottom left corner) or 2ND QUIT (top left corner) to exit the worksheet