Seventeen Years After It Was First Issued at 11% Compounded

Multiple Choice

Seventeen years after it was first issued at 11% compounded semi-annually, a 30-year, $1,000 strip bond was sold on the bond market at a price that would provide the purchaser with a yield rate of 6.4% compounded semi-annually. What was the selling price at that time?

A) $440.89
B) $342.68
C) $248.56
D) $161.96
E) $103.78