A $200 000.00, 6% bond with semi-annual coupons is redeemable at par. What is the purchase price of the bond six years before maturity to yield 8% compounded semi-annually?

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The Answer is FV = $200 000; P/Y = C/Y = 2; PMT = 200 000(0.06/2) = $6 000; i =

= 0.04; n = 6(2) = 12.
PP = 200 000(1.04)^-12 + 6000 FV = $200 000; P/Y = C/Y = 2; PMT = 200 000(0.06/2) = $6 000; i = = 0.04; n = 6(2) = 12. PP = 200 000(1.04)<sup>-12</sup> + 6000