Homework #4C (Value of the Bond Semi-Annually)
Question 2 (1 point)
Pet Food Company bonds pay an annual coupon rate of 8.62 percent. Coupon payments are paid semiannually. Bonds have 9 years to maturity and par value of $1,000. Compute the value of Pet Food Company bonds if the market interest rate on this type of bond is 11.52 percent.
Round the answer to two decimal places.