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Calculate the purchase price (flat) of the $1,000 face value bond using the information given below. (Do not round the intermediate calculations. Round your final
Calculate the purchase price (flat) of the $1,000 face value bond using the information given below. (Do not round the intermediate calculations. Round your final answer to 2 decimal places.) Issue date Maturity date Purchase date Coupon rate (%) Market rate (%) Jan 1, 2006 Jan 1, 2021 April 15, 2006 4.0 4.5 Assume that: Bond interest is paid semiannually. The bond was originally issued at its face value. Bonds will be redeemed for their face value at maturity. Market rates of return and yields to maturity are compounded semiannually
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