TraChem Corporation issues Series Z bonds and Series C bonds. Both bonds have par values of $10,000 and investors trade both bonds at prices indicating a YTM of 5.0%. The Series Z is a zero-coupon bond with a maturity in 10 years. The Series C, maturing in 6 years, is a hybridized bond that pays no coupon for the first year; then pays $300 every six months for three years (six total payments), and finally makes four $700 payments in the last two years.

What is the current price of a Series Z bond? (Hint: The convention for zero-coupon bonds is to calculate the return on a semi-annual basis.)

A) $9,656.26

B) $7,850.19

C) $6,223,02

D) $6,102.71

E) $6,257.30