You are considering the purchase of a $1,000 face value bond that pays 10 percent coupon interest per year, with the coupon paid semiannually (i.e., $50 (= 1,000(.1)/2) over the first half of the year and $50 over the second half of the year). The bond matures in 12 years (i.e., the bond pays interest (12 × 2 =) 24 times before it matures). If the required rate of return
( r b ) on this bond is 8 percent (i.e., the periodic discount rate is (8%/2 =4 percent), calculate the market value of the bond. Present your formula, show your solution and highlight your answer.