A $100 bond has a coupon rate of 8 percent per annum and is due to mature

Question:

A $100 bond has a coupon rate of 8 percent per annum and is due to mature in four years’ time.
The next interest payment is due in one year’s time. Similar bonds have a yield to maturity of 10 percent.

Required:
Calculate the expected purchase price of the bond at today’s date.

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...