A $1,000 corporate bond has a maturity date 20 years from now and a coupon rate of 6 percent paid BI-ANNUALLY

Strip the bond into an interest only bond and a face value only bond. That is, create a bond that consists only of the coupon interest payments and one that consists only of the face value. Calculate the value of each of these new bonds with required rates of return of a) 4% b) 6% c) 8%