Answer:
The price is $68.47
Step-by-step explanation:
Let's assume coupon is redeemable at$100
Number of payments= 36
Each payment is3.8/2=1.9%
Nominal rate is
[1+(i^2/2)]^2= 1 + 0.07
(i^2/2)=0.0344
i^2=0.0688
Price of coupon is
P= 1.9 [1 +(1+i^2/2)^-36]/(i^2/2)+100(1+0.07)^-18
P= $68.47
