Timothy has an opportunity to buy a

$4,000

par value corporate bond with a coupon rate of

7%

and a maturity of five years. The bond pays interest annually. If Timothy requires a return of

8%,

what should he pay for the bond?

Part 2

If Timothy requires a return of

8%,

the amount he should pay for the bond is

$enter your response here.

(Round to the nearest cent.)