A zero-coupon bond with a face-value of 2679 has 3 years until maturity. If the implied rate of annual interest on the bond is 0.07 compounded semi- annually, what is the price of the bond now?

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Bond Valuation

Bond valuation are the notes issued by the corporation to raise long-term funds for the business. The corporations are required to pay the interest on such liabilities at a specified rate of interest (termed as coupon rate) at specified dates which may be on semi-annual or annual basis. These interest payments may be in the form of coupons.