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1 0 . A $ 1 , 0 0 0 par value bond was issued 2 5 years ago at a 1 2 percent coupon

10. A $1,000 par value bond was issued 25 years ago at a 12 percent coupon rate. It currently has 15 years remaining to maturity. Interest rates on similar debt obligations are now 8 percent.
a. What is the current price of the bond?
b. Assume Ms. Bright bought the bond three years ago, when it had a price of $1,050. What is her dollar profit based on the bond's current price?

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