### The yield to maturity of bond with coupon rate

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The yield to maturity of a \$1,000 bond with a 7.2% coupon rate, semiannual coupons, and two years to maturity is 8.7% APR, compounded semiannually. What is its price?

The price of the bond is ____? (Round to nearest cent)

Please show me how you get each number in the formula.

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