Heather Smith is considering a bond investment in Locklear Airlines. The $1,000 par value bonds have a

Question:

Heather Smith is considering a bond investment in Locklear Airlines. The $1,000 bonds have a quoted annual interest rate of 11 percent and the interest is paid semiannually. The yield to on the bonds is 14 percent annual interest. There are seven years to Compute the price of the bonds based on semiannual analysis.

Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest... 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,...