a) Calculate the clean price of a3.9%semi-annual payment,20-year bond that was issued 5years ago,given a market rate on similar bonds of 2%.

b)If a20-year,5%semi-annualcoupon bond is selling at $1,150 with 10 years remaining to maturity,we say that this bond is selling at a ___________.

a) equilibrium

b) par

c) premium

d) discount