I am looking into buying a bond on DeGiro. I am new to this platform and to buying bonds. From what I understand, bonds are usually issued in multiples of 1k and have a coupon rate that is paid to you yearly.
e.g. 1,000 and 8% of the 1000 is paid to you once per year and the 1,000 is paid to you at the end of the term.
What I understand: I will be lending them 1000 until Jan 2023 at a coupon rate of 7.5%.
Why do I need to pay 1122.60 for the bond and will the coupon rate be applied to the extra that I have paid?
Why did someone pay 1200.00 for these bonds last year?