$2.$ Cameron Corporation is offering a new bond issue. It has a $$1000$ par value, an $8\%$ coupon rate and pays annual interest. It has a $9$ year term. Current market interest rates have fallen to $7\%$ during the regulatory filings for the bond.

a$.$ Based on current conditions, what will the market price of Cameron$$s bonds be$?$

b$.$ You bought one of the bonds at issue but one year later need cash and have to sell it$.$ Now the current market rate of interest is $6\%.$ What will your bond price be under these conditions?

c$.$ Based on $($a$)$ and $($b$),$ what would your one year return on your investment be$?$