Bonds issued in the Philippines, make a coupon payments twice a year. So, if an ordinary bond has a coupon rate of 14%, then the owner will get a total of P140 a year, but this P140 will come in two payments of P70. Suppose we are examining such a bond with a face value P1,000. The yield to maturity is quoted at 16%.

Bond yields are quoted like APRs; the quoted rate is equal to the actual rate per period multiplied by the number of periods.

In this case, with a 16% quoted yield and semi-annual payments , the true yield is 8% per six month.

The bond matures in 7 years. What is the bonds price.