Question: Bond Valuation PT GAMA issues bonds with a nominal value of Rp 1 , 0 0 0 , 0 0 0 , a coupon interest

Bond Valuation
PT GAMA issues bonds with a nominal value of Rp1,000,000, a coupon interest rate of 8% per year, and a bond term of 5 years. Currently, the bonds are promised at a price of Rp950,000, which reflects a discount to the nominal value of the bonds. The current market interest rate is 10%.
Questions:
1. Calculate the present value (price) of the bond using the prevailing market interest rate (10%).
2. Determine whether this bond is a discount bond or a premium bond.
3. explain whether investors will get a capital gain or capital loss if they buy this bond now and hold it until maturity.

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