Answer:
$889.29
Explanation:
We have to use the PV formula that is shown in the attachment.
Given that,
Future value = $1,000
Rate of interest = 7.73% ÷ 2 = 3.865%
NPER = 9 years × 2 = 18 years
PMT = ($1,000 × 6%) ÷ 2 = $30
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after solving this, the market price of a bond is $889.29
Since in semi annual basis, the interest rate is half and the time period is doubled. The same is applied
