Consider the following bond:

Years to maturity: 25

Face value: $900

Payments (to the bond holder): 8% of face value per year in 2 payments (1 payment every 6 months)

a) If you personally want to generate 10% annual nominal interest from the bond, compounded semiannually, how much should you be willing to pay for it?

b) Assuming that the person is offered this bond at $500, given a 7% MARR (annual), should the person accept the offer?