You purchased a bond with an even value of $1,000, a maturity of 14 years, and an annual interest rate of 9%. The market return required for a comparable bond at risk is 10%. Answer or calculate the following:

1. Determine the value of the bond or the price being paid, given the required rate of return. Show procedure

2. Is the bond being sold at par value, premium or discount? Explain

3. Is the bond being sold in the primary or secondary market? Explain

4. List two reasons why a company or government issues or sells bonds. Explain

5. Would you buy the bond? Explain