Answer:
Current market price is 474.30
Explanation:
The current price of the bond can be computed using the pv function in excel as stated thus:
=-pv(rate,nper,pmt,fv)
rate is semiannual yield to maturity which is 7.6%/2
nper is the 10 years of bond tenure multiplied by 2
pmt is the coupon payable which is zero
fv is the face value of the bond which is $1000
=-pv(7.6%/2,20,0,1000)=$ 474.30
