What would be the value of a bond with a maturity of 8 years, 12% required rate of return

Present value Interest Factor (PVIF) = 1/(1+r)ⁿ

Present value Annuity Factor (PVAF) = 1/(1+r) +1/(1+r)² +1/(1+r)³ ...............+1/(1+r)ⁿ

Where, r is discounting factor which is required return in our case = 12%

n is number of periods.

Assumptions (As the question contains very limited information)

1. Required rate of return 12% is compounded semi annually. As interest is also paid semi annually.
2. Par Value of bond = 100 and bond would be redeemed also at par only.
3. Semi annula Interest on be i, because no interest rate is prescribed.

Value of Bond = Present value of Cash Flows from Bond

Value of Bond = Present value of Semi Annual Interest + Present Value of Redemption amount

Value of Bond = Semi Annual Interest*PVIF((12/2)%,(8*2)) + Redemption amount*PVAF((12/2)%,(8*2))

Value of Bond = i*1.016 + 100*0.394

Value of Bond = 1.016i + 39.40