Calculate the price of a zero coupon bond that matures in 5 years if the market interest rate is 6.50 percent. Assume semi-annual interest payments and $1,000 par value. (Round your answer to 2 decimal places.)

Calculate the price of a zero coupon bond that matures in 5 years if the market interest rate is 6.50 percent. Assume semi-annual interest payments and $1,000 par value. (Round your answer to 2 decimal places.)

 

use semi-annual compounding:

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PV =FVN(1+i)N=$1,0001.032510=$1,0001.3769=$726.27