A financial calculation question. Please provide information on the calculation with the bonds priced at the discount of $95. Please also use this relationship to price the investment for the discounted bonds. The inflow will be the "coupon rate" or the stated bond interest rate x total bonds at par value per year. Considering principal returned; Unlike physical assets, bonds have no salvage value. They do, however return 100% of principal to the investor at maturity. This would be based on par, not discounted value.

$30 Million Bond Investment

Assumptions to consider:

10-year bond

8% coupon

Priced at a discount: $95

Discount rate is 9%