**n: as 4.5**

A six year bond with a face value of $1,000 bears interest at 7% semi-annually and matures on October 31, 2010. What is the selling price of the bond on July 15, 2006, if the market rate of interest is: 7% compounded semi-annually ?

-1,000 FV

-35 PMT

3.5 i

**9 n**?

**4.5?***2

COMP

PV

1,000