Hi All Having some trouble with question 3 and it seems a bit different to some of the other question 3's that ive been reading which seem to have a couple of different answers provided. the crux of the question is: Calculate the purchase price of a 10 year government bond parcel with two full years remaining in its term. The bonds yeild rate is 8.95%pa, paid as a half yearly coupon and assume the prevailing market interest rate is 7.5%pa. Use a parcel price of $100. I am just looking to see if anyone can give me any idea of the formula i should be using. In the study notes the formula to use is: P=V/(1+i)^n where P = Present Value C = Future Value n = Number of coupon periods i = market yeild divided by 200 Or is this the incorrect formula and ive totally missed the point If someone could help me out I would be very appreciative!