Answer:
$ 2,024.63
Step-by-step explanation:
The quoted price of the bond can e determined using the pv formula below :
=-pv(rate,nper,pmt,fv)
rate is the semi-annual yield to maturity of the bond i.e 5.9%/2=2.95%
nper is the number of coupon interest payments payable by the bond i.e 16*2=32
pmt is the semi-annual interest on the bond i.e $2000*6.02%/2=$60.2
The fv is the face value of the bond of $2,000
=-pv(2.95%,32,60.2,2000)=$ 2,024.63
The current quoted price of the bond is $ 2,024.63 as it expected that a bond with a higher coupon interest compared to yield to maturity would be issued at a premium.