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The yield to maturity of a $1000 bond with a 6.7% coupon rate, semiannual coupons, and...

The yield to maturity of a $1000 bond with a 6.7% coupon rate, semiannual coupons, and two years to maturity is 7.6% APR, compounded semiannually, what is the price?

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Answer #1

Price of the bond is calculated using the PV function:-

=PV(rate,nper,pmt,fv)

=PV(7.6%/2,2*2,6.7%/2*1000,1000)

=983.59

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