7-13 A 26-year corporate bond has a par value of S1,000 and a 9 percent annual coupon rate. As- Bond valuation sume that your required rate of return is 10 percent and that you plan to hold on to this bond for 5 years. You, and the market, have expectations that in 5 years the yield to maturity for this bond (or another bond with similar risk and maturity) will be 8.5 percent. How much are you willing to pay for this bond today? (Hint: You will need to know how much you can sell the bond for at the end of 5 years.) 7-14 You have just purchased a 10-year, $1,000 par value bond. The coupon rate on this bond is Bond valuation percent and interest is paid semiannually. If you require an effective" annual interest rate of 8.16 percent, then how much should you have paid for this bond? andiner with a left to maturity. The bonds have an TT Printing