Mr. Gonzalez wishes to sell a bond that has a face value of $1,000. The bond bears

Question:

Mr. Gonzalez wishes to sell a bond that has a of $1,000. The bond bears an interest rate of 8% with bond interest payable semiannually. Four years ago, $920 was paid for the bond. At least a 9% return (yield) on the investment is desired. What must be the minimum selling price?
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...