Haswell Enterprises' bonds have a 10-year maturity, a 6.25% semiannual coupon, and a par value of $1,000. The going interest rate (rd) is 4.75%, based on semiannual compounding. What is the bond's price?

Question

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$$\begin{array} { l r } 
\text { Par value } & \$ 1,000 \
\text { Coupon rate } & 6.25 \% \
\text { Periodslyear } & 2 \
\text { Yrs tornaturity } & 10 \
\text { N = periods } & 20 \
\text { Arrual rate } & 4.75 \% \
\text { Periodic rate } & 2.38 \% \
\text { PMT/period } & \$ 31.25 \
\text { FV } & \$ 1,000 \
\text { PV } & \$ 1,118.31
\end{array}$$

Haswell Enterprises' Bonds Have a 10-Year Maturity, a 6