How do you determine the value of a bond? What is the value of a ten-year, $1,000 par value bond with a 10 percent annual coupon if its required rate of return is 10 percent? What would be the value of the 10-year bond described above, just after it had been issued, the expected inflation rate rose by 3 percentage points, causing investors to require a 13 percent return? Is the security now a discount bond or a premium bond?