Bond pricing formula

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Nominal Rates: 0R1 = 2.30% 0R2 = 2.64% 0R3 = 2.71% 0R4 = 2.74% 0R5 = 2.76%

0R6 = 2.80% 0R7 = 2.83% 0R10 = 2.88% 0R20 = 2.98% 0R30 = 3.06%

Real Rates: 0r5 = 0.79% 0r7 = 0.80% 0r10 = 0.80% 0r20 = 0.88% 0r30 = 0.94%

I need to know, on 9/6/2018, the value of a 30-year U.S. Treasury Bond that has a 3 percent interest rate (coupon rate), "pays interest semi-annually" and has a par value of $10,000. Thus, the bond pays $300 interest annually or $150 semi-annually. We use the U.S. Treasury Yield curve, above, to determine the required yield (YTM) for your bond.

What is the market price of the bond on 9/6/18 (P0)? for some reason, I keep getting a negative number on the calculation or I get a large number (35k+). I need help with the bond pricing formula.

Reference no: EM132157958

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