Final answer:
The price of the bond with a 6-year maturity, 3.7% coupon rate, semiannual payments, par of $1000, and a yield to maturity of 3.59% is approximately $1041.15.
Step-by-step explanation:
A bond's price is determined by its yield to maturity. In this case, we have a bond with a 6-year maturity, a 3.7% coupon rate, and semiannual payments. The yield to maturity is given as 3.59%. To calculate the price, we need to discount the future cash flows from the bond using the yield to maturity as the discount rate.
The bond will make semiannual coupon payments of $18.50 (3.7% * $1000) for 12 periods (6 years * 2). The final payment will be $1018.50 (the face value of $1000 plus the final coupon payment).
Discounting these cash flows at a yield to maturity of 3.59%, we get a present value of $1041.15. Therefore, the price of the bond is approximately $1041.15 to the nearest cent.