Valuing Bonds $[$LO$2]$ Even though most corporate bonds in the United States

make coupon payments semiannually, bonds issued elsewhere often have annual

coupon payments. Suppose a German company issues a bond with a par value of

$1,000,25$ years to maturity, and a coupon rate of $6\mathrm{.}4$ percent paid annually. If the

vield to maturity is $7\mathrm{.}5$ percent, what is the current price of the bond?