$*$Assume a $$1,000$ face value bond has a coupon rate of $8\mathrm{.}5$ percent paid semi$-$annually and

has an eight$-$year life. If investors are willing to accept a $10\mathrm{.}25$ percent rate of return on

bonds of similar quality, what is the present value or worth of this bond? $*$By how much would the value of the bond in Problem change if investors wanted an $8$

percent rate of return?