A bond with face value $1,000 has a current yield of 7 percent and a coupon rate

Question:

A bond with face value $1,000 has a current yield of 7 percent and a coupon rate of 8 percent. 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... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...