Morning Star Industries Corp. has outstanding, a $1,000 par-value bond with a 6% coupon interest rate. The bond has 10 years remaining to its maturity date. Using the 10% required return,

a. Compute for the value of the bond if the interest rate is paid annually.

b. What if the remaining life of the bond will be 5 years and 1 year, respectively, what is the value of the bond?

c. Find the value of the bond when the required return is (1) 5% and (2) 8% if the remaining life is still 10 years.