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Problem $13-08$

Bond A has the following terms:

Coupon rate of interest $($paid annually$)$: $12$ percent

Principal: $$1,000$

Term to maturity: Seven years

Bond B has the following terms:

Coupon rate of interest $($paid annually$)$: $6$ percent

Principal: $$1,000$

Term to maturity: Seven years

What should be the price of each bond if interest rate is $12$ percent? Use Appendix B and Appendix D to answer the question. Round your answers to the nearest dollar.

Price of bond A: $

Price of bond B: $

What will be the price of each bond if$,$ after three years have elapsed, interest rate is $12$ percent? Use Appendix B and Appendix D to answer the question. Round your answers to the nearest dollar.

Price of bond A: $

Price of bond B: $

What will be the price of each bond if$,$ after seven years have elapsed, interest rate is $10$ percent? Use Appendix B and Appendix D to answer the question. Round your answers to the nearest dollar.

Price of bond A: $

Price of bond B: $