What is the purchase price of a $10 000, 3.5% bond with semi-annual coupons redeemable at 104 in seven years if the bond is bought to yield 2.5% compounded semi-annually?

A)$87 398.13

B)$89 633.13

C)$78 813.89

D)$86 156.21

E)$86 932.79