Problem:
Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 21 years to maturity, and a coupon rate of 9.9 percent paid annually.
Required:
If the yield to maturity is 6.6 percent, what is the current price of the bond?
Note: Please provide reasons to support your answer.