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Bond A has the following terms:

• Coupon rate of interest (paid annually): 8 percent
• Principal: $1,000
• Term to maturity: Ten years

Bond B has the following terms:

• Coupon rate of interest (paid annually): 4 percent
• Principal: $1,000
• Term to maturity: Ten years

1. What should be the price of each bond if interest rate is 8 percent? Round your answers to the nearest dollar. Price of bond A: $ Price of bond B: $

2. What will be the price of each bond if, after five years have elapsed, interest rate is 8 percent? Round your answers to the nearest dollar. Price of bond A: $ Price of bond B: $

3. What will be the price of each bond if, after ten years have elapsed, interest rate is 7 percent? . Round your answers to the nearest dollar. Price of bond A: $ Price of bond B: $