FI - Explanation needed

Just want to know - should we use 5 years or 10 years??? Spot rates are calculated based yearly and corp bond seminannial - am a little confused…pls explain…no need to provide with calculation… An analyst has gathered the following information provided in the table below: Period Years Treasury Spot Rate (%) Credit Spread (%) 1 1 3 0.2 2 2 3.5 0.3 3 3 4 0.4 4 4 4.5 0.5 5 5 5 0.6 Based on the information provided in the table, the current market price of a $1,000 par value, option-free, 0% coupon corporate bond maturing in 5 years is closest to: A. $758.70. B. $781.20. C. $804.44. D. $853.20.

spread=5.6 Price = 1000/(1+0.056/2)^10 Always do semi-annual compounding unless explicitly stated “annual”