Colourful Corps bonds, which has a maturityof

8

years,

12

percent interest rate on a

$1,000

face value. The interest is paid semiannually. If your required rate of return is

5

percent, what is the value of the bond? What would be the answer change if the interest were paid annually?

a.semiannual payments, the value of the bond is

$

(Round to the nearest cent.)

b.

Annual

payments, the value of the bond is

$.

(Round to the nearest cent.)