a. A 51,000 bond has a 6.5 percent coupon and matures after nine vears. It current interest rates are 10 percent, what should be the price of thit band? Assuame that the bond pays interest annually, Use Appendik B and Appendix: D to answer the question. Round your answer to the nearest dollac: b. If after five years interest rates are still 10 peroent, what should be the price of the bond? Use Appendix 3 and Appendix D to answer the quedion, Assume thut thin bend poys interest annually. Round your answer to the nearest dollar. c. Ever though interest rates did not change in a and b, why did the price af the bond change? The price of the bond with the longer term is than the picice of the bond with the shorter term as the investors will collect the principal within a longer period of time. d. Change the interest rate in a and b to 6 peroent and rework your answers. Assume that the bond pays interest annually. Round your arisers to the neareat ejlite. Price of the bond (nine years to maturity): $ Price of the bond (fouc years to maturity): $ Eyen though the interest rate is 6 percent in both cakulations, why are the bond prices difierent? The price of the bond with the longer term is than the price of the bonat with the shoter term as the unvestors will collect the of timie. Interest Factors for the Present Value of One Dollar Thine- Aurical Interest Factors for the Present Value of an Annuity of One Dollar