Assuming face value to be $100
Coupon = (6.5% of 100) / 2 = 3.25
Number of periods = 3 * 2 = 6
Rate = 6.61% / 2 = 3.305%
Current market price = Coupon * [1 - 1 / (1 + r)n] / r + FV / (1 + r)n
Current market price = 3.25 * [1 - 1 / (1 + 0.03305)6] / 0.03305 + 100 / (1 + 0.03305)6
Current market price = 3.25 * [1 - 0.822758] / 0.03305 + 82.275769
Current market price = 3.25 * 5.362844 + 82.275769
Current market price = $99.705
Question 14 1 pts A 3-year 6.5 percent semiannual-pay bond has a current yield of 6.61...
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