1. A plain vanilla bond has a maturity of 10 years, a par value of $100, and a coupon rate of 9%. Interest payments are made annually. The market interest rate is assumed to be constant at 9%. The bond is issued and redeemed at par. The principal repayment the first year is closest to:

a. $0

b. $6.58

c. $10

I need the calculation on how to solve it