Question: A $ 6 , 0 0 0 bond had a coupon rate of 5 . 7 5 % with interest paid semi - annually. Peter

A $6,000 bond had a coupon rate of 5.75% with interest paid semi-annually. Peter purchased this bond when there were 7 years left to maturity and when the market interest rate was 6.00% compounded semi-annually. She held the bond for 2 years, then sold it when the market interest rate was 5.50% compounded semi-annually.
a. Calculate the purchase price of the bond.
b. Calculate the amount that Peter received when she sold the bond.

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