Price of Note X =
Where r is the discounting rate of period i.e. 5.88% /2 = 2.94% _ _ _ (Semi Annual)
And n is the no of periods i.e. 10 years * 2 = 20 periods _ _ _ (Semi Annual)
Coupon is 6% /2 = 3%
=
= 448.8102351 + 560.1659696
= $ 1008.98
Value of Note will be $ 1008.98
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