5. Calculating the bond price Milltower Corporation ralses funds to build windpumps by Issuing 3-year bonds with a coupon rate of 5% and a face value of $1,100. Assume that the market interest rate for a 3-year bond issued by a firm like Milltower is currently the same as the coupon rate. The price of each of these bonds is which means that the bonds sell at Suppose that the market interest rate for bonds that are similar to the MilTower bond has increased to 8%. The price of the Milltower bond changes to , which means that it sells at Suppose that instead of rising, the market rate decreases from 5% to 4%. The new price of the bond changes to which means that the bond sells at