Dmytriw buys a bond with 18 years until maturity. The face value is $10000 and the coupon rate is 7%.

a) If the current interest rate is 6.25% compounded 1 times per year, what is the price of the bond?

b) If Dmytriw insists on earning at least 2.75%, what price should he be willing to pay for the bond?

c) If Tanya pays $500 more than what Dmytriw paid in part b), what interest rate is she earning on her investment?