1. [3 marks] A 20-year, $2,000 bond bearing a coupon rate at 9% payable semi-annually is issued 8.5 years ago. What is the selling price of the bond today to yield a market rate of 5% compounded semi-annually? What is the amount of the bond premium (or discount)? [Show your reasonings/details for full credits] [Answer alone without any procedures/justifications will receive no mark.] Formula: Price = PMTBond (1-(4+0) ^) + FV(1+i) -N