ABC Limited floated a bond of the face value of Rs $1,000$ on which the

interest was payable annually at $8\%$ p$.$a$.$ the yield prevailing in the market

then. The bond has $6$ years remaining when the principal amount shall be

redeemed. If the current interest rate is $10\%$ what price the bond would sell

in the market? What happens to the price if the market interest rates

suddenly changes to $5\%?$