1. Bond Valuation Assume the following informa- tion for an existing bond that provides annual coupon payments:

Par value 14 $1,000 Coupon rate 14 11% Maturity 14 4 years Required rate of return by investors 14 11%

a. What is the present value of the bond?

b. If the required rate of return by investors were 14 percent instead of 11 percent, what would be the present value of the bond?

c. If the required rate of return by investors were 9 percent, what would be the present value of the bond?