A 6 percent $1,000 bond matures in 4 years, pays interest semiannually, and has a yield to maturity of 6.85 percent. What is the current market price of the bond?

a. $768.76

b. $801.38

c. $869.15

d. $910.27

E. $970.69

Answer: The correct answer is $970.69.

Enter 4×2 6.85/2 60/2 1,000

N I/Y PV PMT FV

Solve for -970.69

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