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Compute the present value for each of the following bonds: a. Priced at the end of its fifth year, a 10-year bond with a face value of $100 and a contract (coupon) rate of 10% per annum (payable at the end of each year) with an effective (required) interest rate of 14% per annum. b. Priced at the beginning of its 10th year, a 14-year bond with a face value of $1,000 and a contract (coupon) rate of 8% per annum (payable at the end of each year) with an effective (required) interest rate of 6% per annum. C. What is the answer to b if bond interest is payable in equal semiannual amounts? On January 1, Year 1, you are considering the purchase of $10,000 of Colin Company's 8% bonds. The bonds are due in 10 years, with interest payable semiannually on June 30 and effective December 31. Based on your analysis of Colin, you determine that a 6% (required) interest rate is appropriate. Required: a. Compute the price you will pay for the bonds using the present value model (round the answer to the nearest dollar). b. Recompute the price in a if your required rate of return is 10%. c. Describe risk and explain how it is reflected in your required rate of return