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What price will ralph receive for his bond

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Ralph purchases a newly issued, two-year government bond with a principal amount of $10 000 and a coupon rate of 6% paid annually. One year before the bond matures (and after receiving the coupon payment for the first year), Ralph sells the bond in the bond market. What price (rounded to the nearest dollar) will Ralph receive for his bond if the prevailing interest rate is 5%?

Select one:
a. $9524

b. $10 000

c. $10 095

d. $10 600

provides workings as well.

Reference no: EM131137895

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