Hello,

please help me with this question...

Compute the price of a 3.8 percent coupon bond with 18 years left to maturity and a market interest rate of 7 percent

Assume interest payments are paid semi-annually and solve using semi-annual compounding.

I have tried this formula N*(1-(1/1 +i^N)/.i) + $1000/1=i^N = $19* (1-(1/1.019^36)/.019) + $1000/1.019^36 =

and ended up with $738.85 + $261.15 =$1000

Then I started with N = 2 18 = 36, i = 3.8 2 = 1.9, and PMT = 0.038 $1,000 2 = $19)

Then I felt I was repeating myself.

When I tried to do the 7%, I was not getting anywhere = $374.31+$310.48=$684.79

using this $19*(1-(1/1.035^34)/.035)+1000/1.035^34=

help please, I am so confused! thank you

jenn