A $85,000 bond with a coupon rate of 7.50%, payable semi-annually, is redeemable in 11.5 years. What was the purchase price of the bond, when the yield rate was 4.00% compounded semi-annually?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 11P
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A $85,000 bond with a coupon rate of 7.50%, payable semi-annually, is redeemable in 11.5 years. What was the purchase price of the bond, when the yield rate was 4.00% compounded semi-annually?

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