Final answer:
The bond's price, given the current yield of 6.8572% and a semiannual coupon rate of 6%, is calculated to be $875.00. The yield to maturity (YTM) cannot be precisely determined without additional financial computational tools or details, such as those that might be found in Table 7.1.
Step-by-step explanation:
To calculate the bond's price and yield to maturity (YTM), we can use the given current yield. A bond's current yield is calculated as the annual coupon payments divided by the bond's price. Since the bond has a semiannual coupon rate of 6%, this equates to $30 ($1,000 face value * 6% / 2) per period. Given a current yield of 6.8572%, and using the formula for current yield (Current Yield = Annual Coupon Payment / Bond Price), we can solve for the bond's price:
6.8572% = ($30 * 2) / Bond Price
Bond Price = ($60 / 6.8572%) = $875.00 (rounded to the nearest cent)
Next, we need to calculate the YTM, which is the total return anticipated on a bond if held until it matures. The YTM is calculated based on the bond's current price, face value, coupon rate, and time to maturity. There isn't a straightforward formula for YTM, so we'd have to use a financial calculator or similar tool to calculate it accurately. YTM takes into account the present value of future coupon payments and the face value repayment at maturity.
Given the lack of context and specific computational instructions like Table 7.1, we cannot provide an exact YTM value. But it's worth noting that to find the YTM, one would typically use a method such as trial and error, interpolation, or financial calculator functions which generally require an iterative process.The bond's price is $875.00, while the YTM requires further calculation using more detailed financial information.