A $1,000 par value bond pays a coupon rate of 8.2 %. The bond makes semiannual payments,

Question:

A $1,000 bond pays a rate of 8.2 %. The bond makes semiannual payments, and it matures in four years. If investors require a 10 % return on this investment, what is the bond’s price?
Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...