Lornie Limited has just issued bonds with a face value of $100,000. The current market yields are 8% per annum. The bonds pay 10% per annum half-yearly coupons and on issue has 10 years to maturity (a) Calculate the price of the bonds on issue. (4 marks) (b) As an investor you have purchased the bonds on the date of issue. You have held it for 2 years and have watched the current yield fall to 6% p.a. If you were to sell the bonds after holding it for 2 years calculate how much profit or loss you would make from its sale. (6 marks)