The Treasury department issued a 10-year bond on January 1, 2015. The par value is $1,000 and

Question:

The Treasury department issued a 10-year bond on January 1, 2015. The is $1,000 and the annual rate is 10%. The bond pays two coupons every year, one at the end of June and one at the end of December. The required annual yield is 8%. An investor bought the bond on March 31, 2015. What is the price that he should pay for the bond? (Assume a month has 30 days)
Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...