Denis purchased a $10,000 face value Ontario Hydro Energy bond maturing in five years. The coupon rate

Question:

Denis purchased a $10,000 Ontario Hydro Energy bond maturing in five years. The rate was 6.5% payable semiannually. If the prevailing market rate at the time of purchase was 5.8% compounded semiannually, what price did Denis pay for the bond? (Taken from CIFP course materials.)
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...