III. Bonds

A$.$ Consider the following information on a bond:

$$1,080=\frac{\text{\$}80}{(1+i)}+\frac{\text{\$}80}{(1+i{)}^2}+\frac{\text{\$}80}{(1+i{)}^3}+\frac{\text{\$}80}{(1+i{)}^4}+\frac{\text{\$}80}{(1+i{)}^5}+\frac{\text{\$}1,000}{(1+i{)}^5}$

a$.$ What type of bond is this?

b$.$ What is the face value of this bond?

c$.$ What is the ratio $\frac{80}{1080}$ called?

d$.$ What is i called? Is i less than $8\%,$ greater than $8\%,$ or equal to $8\%?($hint: what is the price of the bond when i equals $8\%?)$