A 10-year, $1,000 par value zero-coupon rate bond is to be issued to yield 6 percent. Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. What should be the initial price of the bond? Note: Assume annual compounding. Do not round intermediate calculations and round your answer to 2 decimal places. If immediately upon issue, interest rates dropped to 5 percent, what would be the value of the zero-coupon rate bond? Note: Assume annual compounding. Do not round intermediate calculations and round your answer to 2 decimal places. If immediately upon issue, interest rates increased to 8 percent, what would be the value