Problem:
You purchased a $10,000 face value commercial bond for $9,000 on June 1,2001. The bond pays $500 interest at the end of each six months. It is now June 1, 2002. Thus, you have already received two $500 payments. The bond matures in five more years on May 31, 2007.
Required:
Question 1: What is the bond (or coupon) interest rate?
Question 2: What return (effective interest rate) are you earning on your bond?
Question 3: What is the bond worth today, if 8% is an acceptable value for MARR?
Note: Please provide full description.