Choice "D" is correct. The issue price of a bond is a function of two different cash flows, one a lump sum and the other a regular stream of payments. First, we need to present value the eventual return of principal using present value tables and factors at the market or effective rate of interest, also known as the yield. Second, we need to present value the regular interest payments, whether annual or semiannual, using present value of an annuity tables and factors at the same market or effective interest rate (yield). Remember that the face rate of interest only has one job, and this is to compute the regular interest payments. It's the market rate of interest that will determine the bond's selling price.
Choice "a" is incorrect. The par value of the bond is also known as the maturity value since this is the amount that must be paid back at maturity.
Choice "b" is incorrect. The yield is another term for market or effective interest rate. It is this rate that will be used when using the PV table and the PV annuity table to determine the issue price of the bond.
Choice "c" is incorrect. Interest will be paid semiannually (usually) or annually, and this interest must be present valued at the market rate along with the bond principal in order to come up with the bond price.