Question $9(1\mathrm{.}5$ points$)$

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Company $xYZ$ is issuing a zero$-$coupon bond that will have a maturity of $10$ years. The bond's par value is $$1,000,$ and the current yield on similar bonds is $7\%.$ What is the expected price of this bond using the semiannual convention?

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a$)$ $$1,000\mathrm{.}00$

b$)$ $$502\mathrm{.}57$

c$)$ $$25\mathrm{.}19$

d$)$ $$280\mathrm{.}98$