Alex buys a ten-year 10,000 floating rate par value bond with annual coupons. She knows the coupons will be level at 6.5% for the first five years, and then increase by a factor of 1.04 every year.

a. Find the price for this bond if she wants a yield rate of at least 7%per annum for the ten-year period.

b. Find the amount of interest paid in the fifth coupon.

c. Find the amount of principal in the fourth coupon