A bond has the following features:

Coupon rate of interest $($paid annually$)$: $10$ percent

Principal: $$1,000$

Term to maturity: $10$ years

What will the holder receive when the bond matures?

If the current rate of interest on comparable debt is $8$ percent, what should be the price of this bond? Assume that the bond pays interest annually. Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar.

$

Would you expect the firm to call this bond? Why?

$,$ since the bond is selling for a $.$

If the bond has a sinking fund that requires the firm to set aside annually 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 $8$ percent annually and there is $$80$ million outstanding? Use Appendix C to answer the question. Round your answer to the nearest dollar.

$