Katie Pairy Fruits Incorporated has a $$1,60017-$year bond outstanding with a nominal yield of $17$ percent $($coupon equals $17\%$$$1,600=$ $$272$ per year$).$ Assume that the current market required interest rate on similar bonds is now only $12$ percent. Use Appendix B and Appendix $D$ for an approximate answer but calculate your final answer using the formula and financial calculator methods.

a$.$ Compute the current price of the bond.

Note: Do not round intermediate calculations. Round your final answer to $2$ decimal places. Assume interest payments are annual.

Current price of the bond

b$.$ Find the present value of $5$ percent $$$$1,600($or $$80)$ for $17$ years at $12$ percent. The $$80$ is assumed to be an annual payment. Add this value to $$1,600.$

Note: Do not round intermediate calculations. Round your final answer to $2$ decimal places. Assume interest payments are annual.

Present value