What is the market value of marcus bond

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Problem 1: Exactly three years ago, Marcus purchased a five-year, $4000 semi-annual bond with a 6.5% coupon. Today, he would like to sell the bond. However, new two-year bonds with a comparable level of risk now offer a coupon Rate at 9.5%. What is the market value of Marcus bond?

Option a) $2,858.67

Option b) $3,788.43

Option c) $3,786.00

Option d) $4,249.67

Reference no: EM132622324

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