The Garcia Companys bonds have a face value of $1,000, will mature in 10 years, and carry a coupon rate of 18.1percent. Assume interest payments are made semiannually.

(a)

Determine the present value of the bonds cash flows if the required rate of return is 18.1 percent. (Round final answer to nearest dollar amount.)

Present value

$________Type your answer here

(b)

How would your answer change if the required rate of return is 11.5 percent? (Round final answer to nearest dollar amount.)

Present value

$______Type your answer here