Question: Valuing Bonds (constant interest rate) : PV Formula to Value a Bond Hi, I understand there is a solution posted for this question, but I

Valuing Bonds (constant interest rate) : PV Formula to Value a Bond

Hi, I understand there is a solution posted for this question, but I do not understand after going thru it.

is it possible to apply the Present Annuity Table to solve this question? (PVIFA, PVIF)

As there is decimal in the interest rate and I could not arrive at the suggested solution using the Present Annuity Table.

Question 1

The effective annual interest rate is 5% and is constant across time and maturities. A bond has four years to maturity, face value $100, annual coupon rate equal to 7% and pays coupons semi-annually. What is the fair price of this bond?

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