This is like a Certificate of Deposit or a Bond which pays interest annually @ 8%. To find its price at 10% discount, you have to find the PV (present value) of the par amount of $100,000 PLUS the present value of three interest payments of $8,000 each at 10% discount.
You have to use 2 formulas to find its current price:
1- PV=FV [1 + R ]^N
PV=100,000 [1 + 0.10 ]^3
PV=$75,131.48 This is the price of the par value of $100,000
2-PV=P{[1 + R]^N - 1.[1 + R]^-N} R^-1=PV OF $1 PER PERIOD.
PV=8,000{[1+.10]^3 - 1 X [1+.10]^-3 X .10^-1},
PV=$19,894.82 Discounted price of the coupons @ 10%
Total price=$75,131.48 + $19,894.82 =$95,026.30
