Best Buy issued collateral bonds 4 years ago that have a face value of $20,000 each and a coupon rate of 8 per year, payable semiannually If the bond maturity date is 20 years from the date they were issued and the interest rate in the marketplace is now 12 per year, compounded semiannually, what i...

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Best Buy issued collateral bonds 4 years ago that have a face value of $20,000 each and

Question:

Best Buy issued collateral bonds 4 years ago that have a of $20,000 each and a rate of 8% per year, payable semiannually. If the bond date is 20 years from the date they were issued and the interest rate in the marketplace is now 12% per year, compounded semiannually, what is the present worth (now) of one bond?

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...