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2- Assume the following information for an existing bond that provides annual coupon payments: Par value = $1,000 Coupon rate = 11% Maturity = 4

2- Assume the following information for an existing bond that provides annual coupon payments:

Par value = $1,000 Coupon rate = 11% Maturity = 4 years

Required rate of return by investors = 14%

A- If the required rate of return by investors were 8 percent, what would be the present value of the bond?

B- If the required rate of return by investors were 11 percent, what would be the present value of the bond?

C- What is the present value of the bond?

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