Assume that a corporation's bonds have 8 years remaining to maturity. In addition, assume that the bonds have a $1000 face value, and the coupon interest rate is 7%. The bonds have a yield to maturity of 10%. Complete parts (a) and (b) below.
a) Calculate the market price of the bonds if interest is paid annually.
b) Calculate the market price of the bonds if interest is paid semiannually.