Answer:
$950.83
Explanation:
For this question, we use the present value formula that is reflected on the attachment below:
Data provided in the question
Future value = $1,000
Rate of interest = 12% ÷ 2 = 6%
NPER = 3 years × 2 = 6 years
PMT = $1,000 × 10% ÷ 2 = $50
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
After solving , the present value of the bond is $950.83
