Haswell enterprises' bonds have a 10-year maturity, a 6.25% semiannual coupon, and a par value of $1,000. the going interest rate (rd) is 4.75%, based on semiannual compounding. what is the bond's current price?

First get the expected cash flow per year in 10 years at the coupon rate of 6.25% semiannually with par value of $1000. semiannual cash = $1000x(0.0625)x2
Expected cash1 ...Expected cash9 = $125
Expected cash10= $1125
Get the bond value with the use of this formula
year bond valuation year(n) = Expected cash(n)/(1+interest) to the power of n
where n = year
interest = 0.475/2, since it is semiannual
year bond valuation year 1= $125/(1+0.0475/2)^1
                                             =$122.100
compute till year 10, then add all year bond valuationpresent bond value = summation of year bond valuation 
present bond value= $122.1+$119.28+$116.5+$113.8+$111.16
                                    +$108.58+$106.06+$103.6+$101.2+$889.64
                                = $1892.82

The present value is greater than the par value because the coupon rate is higher than the interest rate.

The answer should be b.