The yield to maturity of a $1,000 bond with a 7.0% coupon rate, semi-annual coupons, and two years to maturity is 7.6% APR, compounded semi-annually. What must its price be? The price of the bond is S (Round to the nearest cent.)

The yield to maturity of a $1,000 bond with a 7.0% coupon rate, semi-annual coupons, and two years to maturity is 7.6% APR, compounded semi-annually. What must its price be? The price of the bond is S (Round to the nearest cent.)

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 8P

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The yield to maturity of a $1,000 bond with a 7.0% coupon rate, semi-annual coupons, and two years
to maturity is 7.6% APR, compounded semi-annually. What must its price be?
The price of the bond is $
(Round to the nearest cent.)

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