Tracer Manufacturers issued a 10-year bond six years ago. The bond's maturity value is $1000, and its coupon interest rate is 6 percent. Interest is paid semiannually. The bond matures in four years. If investors require a return equal to 5 percent to invest in similar bonds, what is the current market value of Tracer's Bond?

Redemption
value(This is the value at which you will sell the bond at maturity)

$1,000

Buying date

2-Apr-15

N (years to
maturity)

4

Maturity date

2-Apr-19

Coupon rate

6%

Yield to
Maturity of similar bond

5%

Compounding
frequency(per year)

2

Price today

$831.50

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