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A 5-year bond with a face value of $1,000 pays a coupon of 4% per year...

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Finance

A 5-year bond with a face value of $1,000 pays a coupon of 4%per year (2% of face value every six months). The reported yield tomaturity is 3% per year (a six-month discount rate of 3/2 =1.5%).What is the present value of the bond?

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A 5-year bond with a face value of $1,000 pays a coupon of 4%per year (2% of face value every six months). The reported yield tomaturity is 3% per year (a six-month discount rate of 3/2 =1.5%).What is the present value of the bond?

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