ABC, Inc. has issued a bond with par value of $1,000, a coupon rate of 9 percent that is paid annually, and that matures in 20 years. If bonds of similar risk are currently earning a 11% rate of...

ABC, Inc. has issued a bond with par value of $1,000, a coupon rate of 9 percent that is paid annually, and that matures in 20 years.

• If bonds of similar risk are currently earning a 11% rate of return,
  
  how much should ABC, Inc. bond sell for today?
  
  


• If the required return were at 6% instead of 11%,
  
  what would the current value of ABC, Inc. bond be? Contrast this finding with your findings in part (a) and discuss
  .