Problem: You have just bought a security which pays $500 every six months. The security lasts for ten years. Another security of equal risk also has a maturity of ten years, and pays 10 percent compounded monthly (that is, the nominal rate is 10 percent). What should be the price of the security that you just purchased?
a. $6,108.46
b. $6,175.82
c. $6,231.11
d. $6,566.21
e. none of the above