$1$

$8\mathrm{.}33$

points

Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of $1,000,6$ years to maturity, and a coupon rate of $7\mathrm{.}4$ percent paid annually. If the YTM is $9\mathrm{.}4$ percent, what is the current bond price in euros?

Note: Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

References