11.2 Twin Oaks health Center has a bond issue outstanding with a coupon rate of 7% and four years remaining until maturity. The par value of the bond is $1,000, and the bond pays interest annually. a. Determine the current value of the bond if present market conditions justify a 14% required rate of return. b. Now, suppose Twin Oaks four year bond had semiannual coupon payments. What would be its current value ? (Assume a 7 % semiannual required rate of return. However, the actual rate will be less than 7% because a semiannual coupon bond is less risky than an annual coupon.). c. Assume that Twin Oaks bond had a semiannual coupon but 20 years remaining to maturity. What is the current value under these conditions? ( Again, assume a 7% semiannual required rate of return, although the actual rate would probably be greater than 7 percent because of increased price risk.)