Question: Consider a bond (with par value = $1,000) paying a coupon rate of 6% per year semiannually when the market interest rate is only 4%

Consider a bond (with par value = $1,000) paying a coupon rate of 6% per year semiannually when the market interest rate is only 4% per half-year. The bond has three years until maturity.

Required:

Find the bonds price today and six months from now after the next coupon is paid.

What is the total (6-month) rate of return on the bond?

Consider a bond (with par value = $1,000) paying a coupon

rate of 6% per year semiannually when the market interest rate is

Find the bond's price today and six months from now after the next coupon is paid. Note: Round your answers to 2 decimal places. What is the total (6-month) rate of return on the bond? Note: Do not round intermediate calculations. Round your answer to the nearest whole percent

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