What are the key features of a bond?

How do you determine the value of a bond?

What is the value of a 1-year, $1,000 par value bond with a 10% annual coupon if its required rate of return is 10%?

What is the value of a similar 10-year bond?

What would be the value of the bond described in part

if, just after it had been issued, the expected inflation rate rose by three percentage points, causing investors to require a 13% return? Is the security now discount bond or a premium bond?