John is interested in a bond which matures in 15 years. It has a face value of $8000 and a coupon rate of 5%. Like most bonds it pays the bearer an interest payment every 6 months. How much is it worth today if the market interest rate is 4% annually? Note: coupon rate is 2.5% semi-annually, and market interest rate is 2% semi-annually. The first bond interest payment is at the end of the first period(6-month). 6367.70 6820.59 8895.76 9791.60 7641.24