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Homework answers / question archive / A bond with a face value of $1,600 pays half-yearly interest at a rate of 8% pa compounded half-yearly and has 6 years until maturity

A bond with a face value of $1,600 pays half-yearly interest at a rate of 8% pa compounded half-yearly and has 6 years until maturity. The next interest payment is due in exactly one half-year. Calculate the price (P) required to yield 3% pa compounded half-yearly. Give your answer in dollars and cents to the nearest cent.

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