Question: 1. How much would you be willing to pay today for a bond with the following characteristics? (show your work)
a. You would receive $1000 a year for the next 8 years
b. The current interest rate for this type of bond is 8 percent
2. What if the bond paid $500 every six months for the same 8 years 9? (show your work)
3. What if the same bond has an extra $9,000 payment at the end of year 9? (show your work)