Calculate the value of a bond that will mature in 14 years and has a $1000 face value. The annual coupon interest rate is 5 percent, and the investors required rate of return is 7 percent.

Shelly Inc. bonds have a 6 percent coupon rate. The interest is paid semiannually and the bonds mature in 8 years. Their par value is $1,000. If your required rate of return is 4 percent, what is the value of the bond? What is the value if the interest is paid annually?