Bond A has the following terms:

• Coupon rate = 10%
• Principal = $1,000
• Term to maturity = 8 years

Bond B has the following terms:

• Coupon rate = 5%
• Principal = $1,000
• Term to maturity = 8 years

a) What should be the price of each bond if the interest rate is 10%

b) What will be the price of each after 5 years if the interest rate is 10%

c) What will be the price of each if after 8 years, the interest rate is 8%?