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The Kentucky state government recently issued a 15-year, 3% coupon bond that pays interest semiannually. The bonds yield to maturity is 3.75 percent. Assume the

The Kentucky state government recently issued a 15-year, 3% coupon bond that pays interest semiannually. The bonds yield to maturity is 3.75 percent. Assume the face value is $1,000. What is the present value of this bond?

  1. $832.94
  2. $880.56
  3. $914.55
  4. $972.38
  5. $1,061.72

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