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A bond has the following features: - Coupon rate of Interest (paid annually): 7 percent - Principal: $1,000 - Term to maturity: 10 years a.

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A bond has the following features: - Coupon rate of Interest (paid annually): 7 percent - Principal: $1,000 - Term to maturity: 10 years a. What will the holder receive when the bond matures? b. If the current rate of interest on comparable debt is 9 percent, what should be the price of this bond? Assume that the bond pays interest annually. Use Appendix B an Appendix D to answer the question. Round your answer to the nearest dollar. $ Would you expect the firm to call this bond? Why? (V) since the bond is selling for a c. If the bond has a sinking fund that requires the firm to set aside annualiy with a trustee sufficient funds to retire the entire issue at maturity, how much must the firm remit each year for ten years if the funds earn 9 percent annually and there is $90 million outstanding? Use Appendix C to answer the question. Round your answer to the nearest dollar: 5

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