If you held a bond with face value of $10,000 maturity in 13 years, semi-annual coupon of 5 percent, and the coupons on par value bonds with the same maturity today are 3 percent, how much would your bond be worth now on the secondary market?

a.

$10,000

b.

$12,140

c.

$12,127

d.

$17,490