A bond that has a face value of $1,000 and coupon rate of 3.80% payable semi-annually was redeemable on July 1, 2021. Calculate the purchase price of the bond on February 10, 2015 when the yield was 4.05% compounded semi-annually.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
Problem 13P
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A bond that has a face value of $1,000 and coupon rate of 3.80% payable semi-annually
was redeemable on July 1, 2021. Calculate the purchase price of the bond on February
10, 2015 when the yield was 4.05% compounded semi-annually.
Round to the nearest cent
Transcribed Image Text:A bond that has a face value of $1,000 and coupon rate of 3.80% payable semi-annually was redeemable on July 1, 2021. Calculate the purchase price of the bond on February 10, 2015 when the yield was 4.05% compounded semi-annually. Round to the nearest cent
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