EXERCISE 1-13 Compute the present value for each of the following bonds: a. Priced at the end of its fifth year, a 10-year bond with a face value of $100 and a contract (coupon) rate of 10% Ddrlaluatin" (amaalintent per annum (payable at the end of each year) with an effective (required) interest rate of 14% per annum. b. Priced at the beginning of its 10th year, a 14-year bond with a face value of $1,000 and a contract (coupon) rate of 8% per annum (payable at the end of each year) with an effective (required) interest rate of 6% per annum. c. What is the answer to bif bond interest is payable in equal semiannual amounts? OnJanuary 1,Year 1.you are considering thepurchase of$10,000 ofColin Company's 8%bonds. The EXERCISE 1-14 bonds are due in 10 years, with interest payable semiannually on June 30 and effective December 31 Valuation of Bond Based on your analysis ofColin, you determine that a 6% (required) interest rate is appropriate. Required a. Compute the price you will pay for the bonds using the present value model (round the answer tothe nearest dollar). b. Recompute the price in , if your required rate of return is 10%. . Describe risk and explain how it is reflected in your required rate of return semiarenual interest