An Analyst Is Considering the Purchase of a Government of Canada

An analyst is considering the purchase of a Government of Canada bond that will pay its face value of $10 000 in one year's time, but pay no direct interest. The market interest rate is 4 percent and the bond is being offered for sale at a price of $9800. The analyst should recommend

A) not purchasing the bond because the buyer could earn an additional $192 by investing the $9800 elsewhere
B) not purchasing the bond because the buyer could earn an additional $392 by investing the $9800 elsewhere.
C) not purchasing the bond because the price is lower than its present value.
D) purchasing the bond because the bond price is equal to its present value.
E) purchasing the bond because the buyer will earn a profit of $185.