If a bond has annual interest payments of $50 and a par value of $1,000, with six

Question:

If a bond has annual interest payments of $50 and a par value of $1,000, with six years to maturity, what is its current market value if bonds like it are currently offering a 7 percent yield?

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,...