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Consider an 8-year 5% coupon bond that pays a $1,000 par value at maturity. Assume 6.4% to be the approriate disount rate. 1) What is

Consider an 8-year 5% coupon bond that pays a $1,000 par value at maturity. Assume 6.4% to be the approriate disount rate.

1) What is the present value of the bond if it pays annual coupon?

2 )What is the present value of the bond if it pays semi-annual coupons?

3) Now assume that the bond is perpetual.What is the present value of the bond if it pays the same annual coupons forever? With steps please

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