Ten years ago, Walmart Inc. sold a $$500$ million bond issue to finance the purchase of a new distribution center. These bonds were issued in $$1,000$ denominations with an original maturity of $30$ years and a coupon rate of $8\mathrm{.}00\%$ with interest paid semiannually.

Required:

a$)$ Determine the value today of one of these bonds to an investor who requires a $12$ percent return on these bonds. Why is the value today different from the par value?