Final answer:
The bond's price is calculated by discounting the future coupon payments and face value at the required return rate. A bond with a coupon rate higher than the market interest rate sells for more than its face value. The exact bond price would be found using financial formulas and a financial calculator, based on the given coupon rate and required return.
Step-by-step explanation:
The question pertains to the calculation of a bond's price given its coupon rate, required return (market interest rate), and the fact that it pays interest semiannually. To calculate the price of a corporate bond with a 7 percent coupon rate when the required return is 6 percent and the bond pays semiannually, one needs to discount the future coupon payments and the face value to their present value at the required return rate.
Bonds with coupon rates higher than the prevailing market rates are expected to sell for more than their face value due to the more attractive interest payments they offer relative to the market. This premium is determined by discounting the bond's future cash flows at the required return rate. The exact formula involves the present value of an annuity (for the coupon payments) plus the present value of a lump sum (for the face value at maturity).
While the exact calculation is not shown in this response, it is clear that depending on the required return and the coupon rate, the bond's price will be affected. Since the question does not provide all the data necessary to calculate the bond price and since the SEO keywords appear to be derived from a different context, we recommend using proper financial formulas and a financial calculator or spreadsheet software to find the correct answer.