Question: Ascension has a bond with a 10-year maturity, a coupon rate of 5 percent, and a face value of $1000. The bond pays interest semiannually.

Ascension has a bond with a 10-year maturity, a coupon rate of 5 percent, and a face value of $1000. The bond pays interest semiannually. 



What is the bond's price if the yield is 4 percent compounded semiannually (2% per six months)?

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