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A government bond with a face value of $500,000 was issued eight years ago and...

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Accounting

A government bond with a face value of $500,000 was issued eight years ago and there are seven years remaining until maturity. The bond pays semi-annual coupon payments of $22,500, the coupon rate is 9% p.a. paid twice yearly and rates in the marketplace are 8% pa compounded semi-annually. What is the value of the bond today? a. $408,888.52 b. $526,407.81 c. $516,831.86 d. $500,000.00 e. $529,130.74

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