m 13-02 a. A $1,000 bond has a 6.5 percent coupon and matures after eleven years. If current interest rates are 8 percent what should be the price of the bond? Assume that the bond pays interest annually. Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar b. If after six years interest rates are still 8 percent, what should be the price of the bond? Use Appendix B and Appendix D to answer the question. Assume that the bond pays interest annually, Round your answer to the nearest dollar. c. Even though interest rates did not change in a and b, why did the price of the bond change? The price of the bond with the longer term is Seleck receive the principal within a longer period ofess than the price of the bond with the shorter term as the investors will collect the Selectinterest payments and d. Change the interest rate in a and b to 5 answers. Assume that the bond pays interest annually, Round your answers to the nearest dollar Price of the bond (eleven years to maturity): $ Price of the bond (five years to maturity):$ Even though the interest rate is 5 percent in both calculations, why are the bond prices different? The price of the bond with the longer term is -Select than the price of the bond with the shorter term as the investors will colect the Selet interest payments for a longer period of time