The value of the bond to an investor with a required return of 8% is approximately $1,027.
To calculate the value of the bond to an investor with a required return of 8%, we need to consider the present value of the future cash flows. The bond has a coupon rate of 6% and a face value of $1,000. It will mature in 5 years. Using the formula for present value of an annuity, we can calculate the value of the coupon payments, and then add the present value of the face value.
The formula is: Value of bond = (Coupon payment x (1 - (1 + r)^-n))/r + (Face value / (1 + r)^n), where r is the required return and n is the number of years.
In this case, the coupon payment is $60 ($1,000 x 6%), r is 8%, and n is 5 years.
Plugging these values into the formula, the value of the bond is approximately $1,027 (to the nearest dollar).