Im trying to learn bond valuations and working out problems I find online, but I come up with the wrong answer for this one.
Im buying a four year coupon bond for 963.54. The coupon is 5.172% paid quarterly. The bond is offered to me at the beginning of the 10th quarter. Im using a discount rate of 6.9%. I calculate sum the future values
(12.93)/(1.01725)^1 + (12.93)/(1.01725)^2 + ... + (12.93+1000)/(1.01725)^6 = 975.5756342
the answer is 977.97 without much explanation.
Can anyone see what I did wrong?