What Is the Market Price of a $400,000, Ten-Year, 5

Multiple Choice

What is the market price of a $400,000, ten-year, 5% bond issue sold to yield an effective rate of 3% if interest is paid semiannually? (Use spreadsheet software or a financial calculator to calculate your answer. Do not round any intermediary calculations, and round your final answer to the nearest dollar.)

A) $468,242
B) $468,675
C) $322,783
D) $471,250