16a) Youre considering buying a 6 year US Treasury 7% coupon bond with a face value of $1000. The bond pays coupons semi-annually. The next coupon will be paid in 6 months. The bond has a YTM of 6.5% when expressed as an effective annual rate (EAR). Determine the price of the bond. Express you answer in dollars and cents.

16b) Find the arithmetic sum of all payments (as an accountant might do), of the following annuity stream which makes annual payments, and never ends. The first cash flow of $51 is received 8 years from today. Thereafter, the cash flows shrink at an annual rate of -5.7% per year, and continue forever. If you believe the answer is infinity, then enter 9999.9999 as your answer. If you believe the answer is impossible to determine, then enter 8888.8888 as your answer. Otherwise, enter your answer as a positive value using at least 4 significant digits.