A ten-year bond has a par value of $1,000; a 7.5 percent coupon rate; and a yield to maturity of 8.25 percent.Assuming the coupons are paid semi-annually,the market price is closest to:

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The bond's price can be calculated using the present value of its future cash flows, which include semi-annual coupon payments and the par value at maturity. With a coupon rate of 7.5%, the semi-annual coupon payment is $37.50. The yield to maturity is 8.25% annually, or 4.125% semi-annually. Using these values, the bond's price is closest to $949.60.

A Ten-Year Bond Has a Par Value of $1,000; a 7.5