Necked Amber purchased a bond for $1,038.90 exactly two years ago. At that time, the bond had a maturity of five years and a coupon rate of 10% (paid semi-annually). Assuming the rates below are the prevailing rates for this type of bond at different maturities, calculate the price that Amber could sell her bond for today. Maturities 1 year 3 years 5 years 10 years 30 years Interest rates 6% 7% 8.5% 10% 12% Question 7 options: 

a) $1,038.31 

b) $1,078.73 

c) $1,079.93 

d) $1,060.08