A bond is offering 10 semi-annual payments of $50 until maturity in 2027, when the principal, $1000 will be paid. What is the current value of the bond given that the yield of bonds with similar risk is 8% (annual effective yield- semi-annual yield is (1.08)1/2 -1 = 0.039) For which yield will the price be exactly $1000 (face or par value?).
