The market price per bond if the face value is $1,000 is $999.92.
To calculate the market price per bond, use the following formula:
Market Price = Face Value x (1-(1+YTM/2)^(-2*N))/(YTM/2)
Here YTM is the yield to maturity and N is the number of years to maturity.
For this example, the formula would be:
Market Price = $1,000 x (1-(1+(7/2)^(-2*10))/(7/2))
Market Price = $1,000 x (1-(1+3.5^(-20))/3.5)
Market Price = $1,000 x (1-(1+0.0037)/3.5)
Market Price = $1,000 x (1-0.00027571/3.5)
Market Price = $1,000 x (1-0.00007801)
Market Price = $1,000 x 0.99992199
Market Price = $999.92
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