Answer:
the amount pay for the bond is $1,000
Step-by-step explanation:
The computation of the amount pay for the bond is shown below:
Given that
Future value be $1,000
NPER is 5 × 2 = 10
RATE = 8% ÷ 2 = 4%
PMT = $1,000 × 8% ÷ 2 = $40
The formula is given below:
=-PV(RATE,NPER,PMT,FV,TYPE)
After applying the above formula, the present value is $1,000
Hence, the amount pay for the bond is $1,000