Polycorp Treasury a company in the land of Zanadu is holding a parcel of Zanadu Government Bonds

Question:

Polycorp Treasury a company in the land of Zanadu is holding a parcel of Zanadu Government Bonds with a face value of $1,500,000. The bonds were issued six and a half years ago and still have three and a half years to maturity. They pay a coupon rate of interest of 6.5% pa, with interest being paid semi-annually. Currently the market yield quoted for Zanadu bonds is 4.2% pa. The convention in Zanadu financial markets is that the market yield and coupon rate are quoted as annual nominal rates. What is the market value of the bonds (in dollars accurate to three decimal places)?

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...