Respond to the following questions:

• Assume that UPC is issuing a 10-year, $10,000 par value bond with a 6% annual coupon if its required rate of return is 6%. What is the value of this bond? If the coupon rate changes to 7% and then to 5%, would UPC be issuing a discount or a premium bond?
• What are the values of the 5%, 6%, and 7% coupon bonds over time if the required return remained at 6%? Complete the table for years 1 to 8.