The Cullumber Department of Transportation has issued 25-year bonds that make semiannual coupon payments at a rate of 9.575 percent. The current market rate for similar securities is 10.6 percent. Assume that the face value of the bond is $1,000. Excel Template (Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using this template, copy the problem statement from this screen for easy reference to the values youve been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of the problem.)

(a)

What is the current market value of one of these bonds? (Round answer to 2 decimal places, e.g. 15.25.)

Current market value

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