Nunavet Ocean Cruises issued a bond at a face value of $10,000 with 7 years to maturity. The bond has a coupon rate of 9% p.a. and coupons are paid annually. The yield on the bond is 9% per annum.

a. Without calculation, identify and explain how much the bond would be priced at the time the bond was issued?

b. An investor, Jason bought the bond at issuance, held it for 3 years and then sold it for $9,000 to another investor Tim. What would the yield per annum for investor Tim be?

c. Given your answer to Q1 (a) and (b), without calculation, identify and explain if Jason's holding period yield per annum was higher or lower than the yield of the bond at issuance, i.e. 9%?