Solving for missing bond coupons
Fuji TV (フジテレビ) issues bonds with an 8% coupon rate and $1000 face value. Interest is paid semi-annually, and the bond has 25 years to maturity. However, the bond does not pay the first eight coupon payments and instead makes half of these payments at maturity. If investors require an 7.80% return, what is the bond’s value?