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Determine the market price of a $225,000, 10-year, 4% (pays interest semiannually) bond issue sold to...

Determine the market price of a $225,000, 10-year, 4% (pays interest semiannually) bond issue sold to yield an effective rate of 6%. (Round factor values to 5 decimal places, e.g. 1.25125 and final answer to 0 decimal places, e.g. 458,582.)

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Solution: 225000 2.00% Par value semi annual coupon rate = 4%/2 semi annual yield to maturity = 6%/2 Number of payments = 10*

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