The Sisyphean Company has a bond outstanding with a face value of $ 5,000 that reaches maturity in 8 years

Given about Sisyphean Company's bond,

Face value = $5000

Years to maturity = 8 years

Coupon rate = 8% paid semiannually,

So, semiannual coupon payment = (Semiannual coupon rate)*face value = (8%/2)*5000 = $200

Yield to maturity = 7.6%

So, semiannual yield to maturity = annual yield/2 = 7.6/2 = 3.8%

Number of coupon payment = years to maturity*2 = 8*2 = 16

Price of the bond can be calculatedon financial calculator using following values:

FV = face value = 5000

PMT = periodic coupon payment = 200

N = Number of coupon payment = 16

I/Y = periodic yield = 3.8

Compute for PV, we get PV = -5118.26

So, Price of the bond is $5118.26 or approx $5118.

Option C is correct.