(1)Jiayin purchases a ten-year 8% $62,000 par-value bond with annual coupons eighty months after its issue. The original purchaser paid a price to yield 8.5% if the bond was held until maturity, as does Jiayin. Compute the accrued interest by the theoretical method at 8.5% and also by the practical method. Find the split of the accrued interest by the theoretical method at 8.5% into interest and principal.

(2)Drew Jefferson purchases a new $20,000 9% twelve-year bond with semiannual coupons. If held to maturity, the redemption payment is $18,500, and the bond would yield Mr. Jefferson 8% convertible semiannually. The bond has an American option and is callable beginning at three years from issue. If the bond is called at timeT,whereTis measured in coupon periods, the call premium isp(T). FInd an expression for the amountp(T)so that Mr. Jefferson's yield is 8% no mater when the bond is called.

Please show all steps and use formulas.