Problem: Terminator Bug Company bonds have a 14% coupon rate. Interest is paid semiannually. The bonds have a par value of $1,000 and will mature 10 years from now. Compute the value of Terminator bonds if investors' required rate of return is 12%.
a) $1,114.70
b) $1,149.39
c) $894.06
d) $1,000.00