Please assist with the given problem. Provide calculations and explanations.
1. How much should a $1,000-face-value bonds sell for, assuming the following conditions:
- The bond pays a coupon of 11%
- The coupon payments are paid annually.
- The required rate of return on similar-risk investments is 9%.
- The bond matures in 15 years
2. How much should a $1,000-face-value bonds sell for, assuming the following conditions:
- The bond pays a coupon of 7%
- The coupon payments are paid semi-annually.
- The required rate of return on similar-risk investments is 7%.
- The bond matures in 10 years