A General Power bond with a face value of $1,000 carries a coupon rate of 8.9%, has 9 years until maturity, and sells at a yield to maturity of 7.9%. (Assume annual interest payments.)

a. What interest payments do bondholders receive each year?

Interest payments $

b.

At what price does the bond sell? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Price $

c.

What will happen to the bond price if the yield to maturity falls to 6.9%? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Price will (Click to select) rise fall by $