### Bond value is assessed.

1. Find the value of a bond with the following characteristics: (a) face value of $1,000, (b) 8% coupon rate, (c) the bond matures in 14 years, (d) the market rate of interest is 6%. 2. Is the bond priced in question 1 selling at a discount or premium to its par value? 3. Using the information from question 1: the market r