a. You have a 6% annual payment perpetual bond. If the market interest rates are 5% and the bond has a nominal $1,000 par value, what is the current market value of this bond? Show your work! 4 marks.

b. A 15-year zero coupon bond has a face value of $1,000. If the current market interest rates are 7%, what is the price of this bond? Show your work! 4 marks.