A firm has an issue of $1000 par value bonds with a 12 percent stated interest rate

Question:

A firm has an issue of $1000 bonds with a 12 percent stated interest rate outstanding. The issue pays interest annually and has 10 years remaining to its date. If bonds of similar risk are currently earning 8 percent, how much will the firm's bond sell.

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... 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,...