Bond valuation. company issued 10-year bonds exactly four years ago at a coupon rate of 4%. The bonds make semi-annual payments, and the par value of bonds is 100 000. Meanwhile, the interest rates have risen considerably and the effective yield (e.g. EAR) of comparable bonds is currently 7.4% percent. Try to estimate the current bond price. To get full points, you should consider the correct nominal rate for discounting that reflects the actual effective yield.