Consider that Mr. Ali was offered to invest in a bond that has a par value of R.O 20,000 and pays 5% coupon rate at the end of each year in coupon payments and has 3 years remaining until maturity. Assume that the prevailing annualized yield of the bond is 8%, with additional data of (present value annuity is = 2.577 and present value is 0.794)

If the coupon rate is increased and becomes 10%, how much would be the new coupon payment?

How much is computed coupon payment at the end of each year