7-3: Bond Valuation 7-4: Bond Yields 7-6: Bonds with Semiannual Coupons Problem Walk-Through

Problem 7-13 Price and yield

An 6% semiannual coupon bond matures in 4 years. The bond has a face value of $1,000 and a current yield of 6.6177%. What is the bond's price? Round your answer to the nearest cent. $ What is the bond's YTM? (Hint: Refer to Footnote 7 for the definition of the current yield and to Table 7.1.) Round your answers to two decimal places. %