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A $500, 9% bond maturing on 10/1/20 is sold on 4/1/14. a. If the buyer desires 8%(2) on his money, what will he pay for

A $500, 9% bond maturing on 10/1/20 is sold on 4/1/14.

a. If the buyer desires 8%(2) on his money, what will he pay for the bond?

b. Was the bond sold at a premium or a discount and how much?

c. If the bond has a call provision of 105 that may be taken on 10/1/16, what is its value?

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