Erk, Inc. has 12 percent coupon bonds on the market with 6 years to maturity. The bonds mave a face value of $1,000 and make annual coupon payments. Requirement 1: What is the value of Erk's bonds to an investor who requires an annual rate of return of 8 percent? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Bond Value $ Requirement 2: Assume that the bond is currently selling at a market price of $1,225. What is the current yield on Erk's bonds? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Current yield D % Requirement 3: Assume once again that the bond is selling at a market price of $1,225. What is the yield-to-maturity on Erk's bonds? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Yield to maturity 7% Requirement 4: How do you explain the difference between the current yield and the yield to maturity found in Requirements 2 and 3? (i.e., why is the current yield higher or lower than the yield to maturity for these bonds?)