Answer: the market price is $2,484.1434
Explanation:
Market price =
C × 1 - (1+r)*-n /r + F/ (1+r)*n
C = coupon rate = 5.75% of 2000
= 5.75/100 × 2000
= $115
F= face value = $2,000
r = yield to maturity = 4.7% = 0.047
n = number of years to maturity =22
Price = 115 × 1-(1+0.047)*-22 / 0.047 + 2000/(1+0.047)*22
Price = 115 × 1-(1.047)*-22 / 0.047 + 2000/(1.047)*22
Price= 115 × 1 - 0.364060032/0.047 + 2000/2.74679974
Price =( 115 × 0.635939968/0.047 ) + 928.120063
=( 115 × 13.5306376) + 928.120063
= 1556.02332 + 928.120063
Market price = $2,484.1434
Note: ( * ) means "raised to power"
