You are considering a 10-year, Rs. 1000 par value bond. Its coupon rate is 10% and interest is paid semiannually. If you require an effective annual interest rate of 8%, how much should you be willing...

You are considering a 10-year, Rs. 1000 par value bond. Its coupon rate is 10% and interest is paid
semiannually. If you require an effective annual interest rate of 8%, how much should you be willing
to pay for the bond? Is effective annual interest rate differing from coupon rate? Explain.