What is the maximum price you will pay for a bond with a face value of $1,000 and a coupon rate of 14 , paid annually, if you want a yield to maturity of 10 Assume that the bond will mature in 10 years and the first payment will be received in one year ...

What is the maximum price you will pay for a bond with a face value of $1,000

Question:

What is the maximum price you will pay for a bond with a of $1,000 and a rate of 14%, paid annually, if you want a yield to of 10%? Assume that the bond will mature in 10 years and the first payment will be received in one year.
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... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...