2. Kiawah issued bonds on 1/1/2011. Its face value is $ 500,000. Its coupon rate (face rate or contractual rate) is 5%. Its term starts at 1/1/2011, and it ends at 12/31/2020. The interest payment date is 12/31 of each year.

a. How much interests are paid on 12/31/2013 to bondholders?

b. How much are to be paid back to bondholders on 12/31/2020?

c. If the market interest rate were 7% on 1/1/2011, would the issue price be greater or less than $ 500,000?

d. If the market interest rate were 3% on 1/1/2011, would the issue price be greater or less than $ 500,000?