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Assume that it is February 1 5 , 2 0 1 4 and there are exactly 1 0 six - month time periods remaining until

Assume that it is February 15,2014 and there are exactly 10 six-month time periods remaining until maturityor a 30-year US Treasury bond that was originally issued on February 15,1989. The bond matures on February 15,2019 and has a coupon rate of 8.875%. The coupons are paid semi-annually. The yield to maturity is 4.55%.The bond was sold in face value increments of $100. Using either the PVA formula or the bond pricing formula (discounting of cash flows), what is the current price of the bond? Begin with the general formula.
Show all your work. Is the bond priced at a premium, discount, or at par? And, why? Explain.

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