Question: Denis purchased a $ 1 0 , 0 0 0 face value Ontario Hydro Energy bond maturing in five years. The coupon rate was 6
Denis purchased a $ face value Ontario Hydro Energy bond maturing in five years. The coupon rate was payable semiannually. If the prevailing market rate at the time of purchase was compounded semiannually, what price did Denis pay for the bond? Do not round the intermediate calculations. Round your final answer to decimal places.
Assume that:
Bond interest is paid semiannually.
The bond was originally issued at its face value.
Bonds are redeemed at their face value at maturity.
Market rates of return are compounded semiannually.
Bond price
$
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