Question: Dan is evaluating a bond issued by Spark Ltd that has a face value of $1,000 and a coupon rate of 5% pa. The coupons

Dan is evaluating a bond issued by Spark Ltd that has a face value of $1,000 and a coupon rate of 5% pa. The coupons are paid semi-annually. The bond has 10 years to maturity and 6.5% pa yield. If Dan has $9,000 to invest, calculate the price of the bond (show all calculations and show answer correct to two decimal places) and explain how many bonds he can buy.

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