Find the pure price of each google bond

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Reference no: EM131937356

Mick is considering acquiring a couple of Google bonds, which were initially offered with a face value of $1000, a coupon rate of 11% per year (paid semiannually), and a maturity of 8 years. However, these bonds already paid 4 coupons and Mick is planning to buy them now, right before the next coupon payment (hence coupon received at Mick time “zero”). Find the pure price of each Google bond if the current market interest rate for similar financial assets is 7% per year (compounded semiannually). Note: round your answer to two decimal places, and do not include spaces, currency signs, plus or minus signs, nor commas. Answer is 1235.03 I just can't figure out the work for it.

Reference no: EM131937356

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