A Province of Ontario bond has 14½ years remaining until it matures. The bond pays $231.25 interest at the end of every six months. At maturity, the bond repays its $5000 face value in addition to the final interest payment. What is the fair market value of the bond if similar provincial bonds are currently providing investors with a return of 7.8% compounded semiannually?

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The Answer of A Province of Ontario bond has 14½ years remaining until it matures. The bond pays $231.25 interest at the end of every six months. At maturity, the bond repays its $5000 face value in addition to the final interest payment. What is the fair market value of the bond if similar provincial bonds are currently providing investors with a return of 7.8% compounded semiannually?

A Province of Ontario Bond Has 14½ Years Remaining Until