Apex Corp. has two outstanding bond issues. One issue consists of 7% annual coupon bonds and the other issue consists of zero-coupon bonds. Both bonds have a $1,000 par value. For each bond, calculate the bond price and the percentage change in price when the required rate of return changes as described below.

a. Ten years to maturity and the required rate of return goes from 7% to 8%.

b. Twenty years to maturity and the required rate of return goes from 7% to 8%.

c. Ten years to maturity and the required rate of return goes from 7% to 6%.

d. Twenty years to maturity and the required rate of return goes from 7% to 6%.

e. Compare and contrast your answers for parts a through d and comment on your observations.