Bond A has the following terms:

• Coupon rate of interest (paid annually): 12 percent
• Principal: $1,000
• Term to maturity: Seven years

Bond B has the following terms:

• Coupon rate of interest (paid annually): 6 percent
• Principal: $1,000
• Term to maturity: Seven years

1. What should be the price of each bond if interest rate is 12 percent? UseAppendix BandAppendix Dto answer the question. Round your answers to the nearest dollar.
2. Price of bond A: $
3. Price of bond B: $
4. What will be the price of each bond if, after three years have elapsed, interest rate is 12 percent? UseAppendix BandAppendix Dto answer the question. Round your answers to the nearest dollar.
5. Price of bond A: $
6. Price of bond B: $
7. What will be the price of each bond if, after seven years have elapsed, interest rate is 11 percent? UseAppendix BandAppendix Dto answer the question. Round your answers to the nearest dollar.
8. Price of bond A: $
9. Price of bond B: $