You are considering investing in a bond that will pay you $100 per year for 30 years. If the yield to maturity (required return) is 8%, what is the present value of these payments? In addition to the $100 per year, the bond will also pay you $1000 in 30 years. What is the present value of these payments? Use the yield of 8%. Given your answers to the above questions, how much should you be willing to pay for the bond