On August 10, 2016, Allison purchased two bond certificates with a face value of $5000 each issued

Question:

On August 10, 2016, Allison purchased two bond certificates with a face value of $5000 each issued by Enbridge Pipeline Corp. Bonds from this company currently in the market have a semi-annual coupon rate of 6.5 percent and mature on June 11, 2029. The required market rate for a bond of this type is 4.44 percent. Calculate the cash price of the 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...