how would you solve a b ans c without a fincncial calculator

1. Bond Valuation. Assume the following information for an existing bond that provides annual coupon payments: Par value = $1,000 Coupon rate = 11% Maturity = 4 years Required rate of return by investors = 11% a. What is the present value of the bond? ANSWER: PV of Bond - PV of Coupon Payments + PV of Principal $110(PVIFA -11%-a) +$1,000(PVIF -11%-a) $110(3.1024)+$1,000(.6587) $341 + $659 -- $1,000 b. If the required rate of return by investors were 14 percent instead of 11 percent, what would be the present value of the bond? ANSWER: PV of Bond = PV of Coupon Payments + PV of Principal -S110(PVIFA-W)+ $1,000(PVIF-146-) = $110(2.9137) + $1,000(.5921) $321 + $592 $913 c. If the required rate of return by investors were 9 percent, what would be the present value of the bond? ANSWER: PV of Bond - PV of Coupon Payments + PV of Principal = $110(PVIFA-9%)+$1,000(PVIF-) = $110(3.2397)+ $1.000(7084) = $356 +3708 $1,064