Question: You have just purchased a 10-year, $1,000 par value bond. The coupon rate on this bond is 8 percent annually, with interest being paid each

You have just purchased a 10-year, $1,000 par value bond. The coupon rate on this bond is 8 percent

annually, with interest being paid each 6 months. If you expect to earn a 10 percent simple rate of re-

turn on this bond, how much did you pay for it?

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Contemporary Business Mathematics with Canadian Applications 11th edition by S. A. Hummelbrunner, Kelly Halliday, Ali R. Hassanlou, K. Suzanne Coombs