Consider a Security with a Face Value of $100 000

Multiple Choice

Consider a security with a face value of $100 000 to be repaid at maturity. The maturity of the security is 3 years. The coupon rate is 9 per cent p.a. and coupon payments are made semi-annually. The current discount rate is 12 per cent p.a. What is the security's price (round your answer to two decimals) ?

A) $127 000.00
B) $100 000.00
C) $76 046.08
D) $92 624.01