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What will be the carrying value of the bond on january

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Problem 1: An outstanding bond has a carrying value of $690,790, and a face value of $643,000 on January 1 of Year 3. The bond pays a semi-annual coupon every January 1 and July 1 using an annual coupon rate of 6.30%. The yield to maturity (or the market yield) of the bond was 5.49% at the time of issue. (Assume semi-annual compounding for the annual interest rates.) What will be the carrying value of the bond on January 1 of Year 4 immediately after paying the coupon?

Option 1: $688,170

Option 2: $705,374

Option 3: $722,578

Option 4: $739,783

Option 5: $756,987

Reference no: EM132829374

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