QUESTION $2$

Mark Inc. offers a $6\mathrm{.}5\%$ coupon bond with annual payments. The yield to maturity is $6\mathrm{.}71\%$

and the maturity date is $7$ years from today. What is the market price of this bond if the face

value is $$1,000?$ Show the calculations in detail. $(10$ marks$)$

ANSWER SHEET QUESTION $2$QUESTION $2$

Mark Inc. offers a $6\mathrm{.}5\%$ coupon bond with annual payments. The yield to maturity is $6\mathrm{.}71\%$

and the maturity date is $7$ years from today. What is the market price of this bond if the face

value is $$1,000?$ Show the calculations in detail. $(10$ marks$)$

ANSWER SHEET QUESTION $2$