Chapter $6$ Homework $($i$)$

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$1$

Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of $1,000,6$ years to maturity, and a coupon rate of $8\mathrm{.}9$ percent paid annually. If the YTM is $10\mathrm{.}9$ percent, what is the current bond price in euros?

Note: Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

Current bond price