Question: You are interested in purchasing a bond that has a face value of $1,000. The bond matures in 40 years and has a coupon rate

You are interested in purchasing a bond that has a face

You are interested in purchasing a bond that has a face value of $1,000. The bond matures in 40 years and has a coupon rate of 6.0% per year, paid semi-annually. Calculate the current price of the bond, assuming that the yield to maturity is 5% per year compounded semi-annually. Show your calculation

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