Mia wants to invest in Government of Canada bonds that have a par value of $20 000 and a coupon rate of 4 5 percent The bonds have a 10 year maturity and Mia requires a 6 percent return, compounded semi annually How much should Mia pay for the bonds, assuming that interest is paid semi annually ...

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Mia wants to invest in Government of Canada bonds that have a par value of $20 000

Question:

Mia wants to invest in Government of Canada bonds that have a of $20 000 and a rate of 4.5 percent. The bonds have a 10-year and Mia requires a 6 percent return, compounded semi-annually. How much should Mia pay for the bonds, assuming that interest is paid semi-annually?
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... 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,...