Final answer:
The current price of the bond is $9,263.99. Therefore, the correct answer is option C: $9,263.99.
Step-by-step explanation:
To calculate the current price of the bond, we need to calculate the present value of all the future cash flows. In this case, the bond pays interest semi-annually for a total of 20 payments over 10 years.
The coupon payment will be $10,000 * 5.0% / 2 = $250 every six months. The discount rate is 6.0% / 2 = 3.0% per semiannual period.
Using the present value formula, the current price of the bond is the sum of all the present values of the future cash flows:
PV = ($250 / (1 + 3.0%)^1) + ($250 / (1 + 3.0%)^2) + ... + ($250 / (1 + 3.0%)^20) + ($10,000 / (1 + 3.0%)^20)
Calculating this equation, the current price of the bond is approximately $9,263.99. Therefore, the correct answer is option C: $9,263.99.