1. Bailey Manufacturing issued a 12 year maturity $1,000 par value, an 11% coupon rate, and semiannual interest payments. (15) a. Three years after the bonds were issued, the going rate of interest on bonds such as these fell to 7%. At what price would the bonds now sell? b. Now assume that three years after the bonds were issued the going rate of interest on bonds such as these rose to 13%. At what price would the bonds now sell? c. Suppose that the conditions in part a existed -- three years after the issue date, interest rates fell to 7%. Suppose further that the interest rate remained at 7% for the next 9 years. What would happen to the price of the bonds over time?