7. Consider a 8% bond with seniannual coupons paying $1,000 (a) If it is non-callable and matures at the end of 10 years, what is the price of the bond so as to produce an annual yield rate of 6% convertible semiannually for the investors? (b) Assume the bond is callable at $1,050 at the end of year 4, at 1,025 at the end of year 7, and at $1,000 at the end of year 10. Find the maximum price that an investor is willing to pay so as to yield at least 6% per year convertible semiannually. (Answer: (a) 1,148.77; (b) 1,109.67)