Problem:
Marty's bonds have a 15-year maturity, a 7% semiannual coupon, and a par value of $1,000. The going interest rate is 6%, based on semiannual compounding.
Required:
Question: What is the bond's price?
- $1,008.65
- $1,024.67
- $1,051.34
- $1,098.00
- $1,105.78
Note: Explain all calculation and formulas.