Assume a $1,000 face value bond has a coupon rate of 8.5 percent paid semiannually and has an eight-year life. If investors are willing to accept a 10 percent rate of return on bonds of similar quality, what is the present value or worth of this bond?

Step 1:
Coupon rate
Years to maturity
Number of coupon payments per year
Par value
Market rate		(APR)
Step 2:
Compute periodic interest rate
Compute number of periods
Compute coupon cash flow
Step 3: