The rates are nominal semiannual rates, as well as doling out semiannual coupons and face value at maturity.

3) Smith purchases a 20 year, 8%, $1000 face value bond with a yield rate of 10%. After the 10th coupon he sells the bond. If the new buyer keeps the bond until maturity (at which time she will receive the face value redemption and her last coupon) and her actual semiannual yield rate is also 10% then find her purchase price