A coupon bond with a par value of $1,000 and a 10-year maturity pays semiannual coupons of $21. (a) Suppose the yield for this bond is 4 % per year compounded semiannually. What is the price of the...

A coupon bond with a par value of $1,000 and a 10-year maturity pays semiannual coupons of $21.

(a) Suppose the yield for this bond is 4 % per year compounded semiannually. What is the price of the bond?

 (b) Is the bond selling above or below par value? Why?