(Related to Checkpoint 9.4)(Bond valuation) A bond that matures in

10

years has a

$1,000

par value. The annual coupon interest rate is

13

percent and the market's required yield to maturity on a comparable-risk bond is

15

percent. What would be the value of this bond if it paid interest annually? What would be the value of this bond if it paid interest semiannually?

a.The value of this bond if it paid interest annually would be

$nothing.

(Round to the nearest cent.)