On the Day It Was Issued, Aaron Bought a 30-Year

Multiple Choice

On the day it was issued, Aaron bought a 30-year, $1,000 strip bond at a market rate of 6% compounded semi-annually. Four years later he sold it to Zevon at the market rate of 7% compounded semi-annually. What was Aaron's profit or loss?

A) ($6.91) Loss
B) ($2.58) Loss
C) $0.00
D) $2.58 Profit
E) $6.91 Profit