The yield to maturity of a $1,000 bond with a 7.0% coupon​ rate, semiannual​ coupons, and two years to maturity is 7.6% ​APR, compounded semiannually. What is its​ price?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 4MC
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The yield to maturity of a
$1,000
bond with a
7.0%
coupon​ rate, semiannual​ coupons, and two years to maturity is
7.6%
​APR, compounded semiannually. What is its​ price?
 
 
 
The price of the bond is
​(Round to the nearest​ cent.)
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