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XYZ Inc. has a bond with the following characteristics: Par: $1,000 Time to maturity: 8 year Coupon Rate: 4%, semi-annual payments Yield to maturity: 6%

XYZ Inc. has a bond with the following characteristics:

  • Par: $1,000
  • Time to maturity: 8 year
  • Coupon Rate: 4%, semi-annual payments
  • Yield to maturity: 6%

Calculate the present value of the annuity component of the cash flows. (Enter a positive value and round to 2 decimals)

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