Calculating Present Value of Bond Cash Flows

A fixed income investor is considering purchasing a bond with a face value of $1,000 that pays an annual coupon of 6% for 5 years and matures at par. The investor's required rate of return is 8%. The investor wants to know the present value of the bond's cash flows and whether it is worth more or less than its face value.

To evaluate the bond's value, the investor will calculate the present value of the expected cash flows, which include the annual coupon payments and the face value received at maturity. Using the discounted cash flow (DCF) method, the investor must factor in the required rate of return to find the bond's value.

What is the present value of the bond's expected cash flows?