originally issued $10-$year notes in July $1,2014.$ These notes have a face value of o

$$1,000$ and a $9\%$ coupon. Interest payments are made annually on June $30.$

a$.$ If the notes have a yield to maturity of $8\%,$ what would you have been willing to pay for a

note at the time of original issue $($i$.$e$.$ July $1,2014)?$

b$.$ It is now June $29,2019.$ Connelly is currently facing a liquidity crisis and has proposed

that the notes be restructured so as to be $$payment$-$in$-$kind$($PIK$)$ bonds for the next three

interest payments $($i$.$e$.$ June $30$ of $2019,2020,$ and $2021),$ then resume cash interest

thereafter until their maturity on June $30$ of $2024.$ Under the PIK structure, holders of the

note would receive additional notes with a face value equal to the promised interest

payment. What would you be willing to pay for a note on June $29,2019$ if the proposed

restructuring of interest payments takes place?