Calculate the value of a 6 year 2% coupon bond with semiannual payments, 1000 par.  Expected return is the risk free rate of 3%.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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1. Calculate the value of a 6 year 2% coupon bond with semiannual payments, 1000 par.  Expected return is the risk free rate of 3%.

Note: The correct answer is 945.4626 Could you explain clearly?

 

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