Consider a 5- year bond with a par value of $80,000. This bond pays dividends or coupon of 6% each year. It will also pay a par value at the maturity. This bond is priced to earn 3.4% interest compounded yearly.

a. Calculate the portion of the bond's cost that will provide a par value of $80,000 after 5 years

b. Calculate the portion of the bond's cost that will provide the series of yearly payments of 6% of the par value for 5 years

c. Calculate the total cost of this bond