Andrew industries is planning to issue a 30-year bond that pays 7.00% coupon rate (annual coupon payments) with a face value of $1,000.00. Andrews currently has an "A" rating from Standard & Poor's. Assume that the yield maturity for other long-term , A rated bonds is 6.50%. What will be the market price of the Andrews Industries bond when it is issued?

Suppose that you bought the Andrews Industries bond when it was first issued at the price you found in the previous question. You held the bond for five years, but have now decided to sell it. Assuming that the yield to maturity is now 7.00%, determine your holding period return?