A $1,000 par value bond was issued 25 years ago at a 12 percent coupon rate. It currently has 15 years remaining to maturity. Interest rates on similar debt obligations are now 8 percent. a. What is the current price on the bond? (Look up the answer in Table 16-2 on page 500.)

$1000

b. Assume Ms. Russell bought the bond three years ago when it had a price of $1,050. What is her dollar profit based on the bond