Clorica buys a bond with $1000.00 par value, 4 percent semiannual coupon and 8 years to maturity.

If the yield to maturity is 7 percent, how much is Clorica paying for this bond?

In the next three years, Clorica will sell this bond to Amber at the anticipated yield to maturity of 8 percent (the yield is expected to increase by that time). How much will Amber buy this bond from Clorica in the next three years?