What is the bond price at time

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(This is a multi-step problem. If you make an error in the first step, it is likely that you will get incorrect answers in all or some of the subsequent remaining steps. Be right first time!)

At time t = 0 (Now), in the bond market you observe a regular coupon bond with following characteristics: Face value: $1,000.00; Maturity: 5 years; Coupon rate: 9.000% and coupons are paid annually. The market interest rate/your required rate of return/yield to maturity is 8.000% per annum continuously compounded.

What is the bond price at time t=0 (Now)?

Reference no: EM133118737

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