Answer:
The answer is $65,382.03
Explanation:
The payment is quarterly, meaning, the interest will be paid 4 times in a year
N(Number of periods) = 88 times ( 22years x 4)
Interest rate = 0.83percent
PV(present value or market price) = ?
Annuity = $1,050
We are using a Financial calculator for this.
N= 88; I/Y = 0.83; PMT = 1.050; CPT PV= -65,382.03
Therefore, the market price of the bond is $65,382.03
