Assume a $1,000 face value bond has a coupon rate of 8.9 percent paid semiannually and has an eight-year life.

(a)

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If investors are willing to accept a 10.1 percent rate of return on bonds of similar quality, what is the present value or worth of this bond? (Round final answer to nearest dollar amount.)

Present value

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(b)

What is the value of the bond if investors wanted an 8.4-percent rate of return? (Round final answer to nearest dollar amount.)

Bond value

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