Question 3 (a) A firm has an issue of $1,000 par value bonds with a 12 percent stated interest rate outstanding. The issue pays interest annually and has 10 years remaining to its maturity date. If bonds of similar risk are currently earning 8 percent, calculate the price of the bond today. (5 marks) (b) Black Beauty Ltd's seven-year $1,000 par bonds pay 9 percent interest. Your required rate of return is 7 percent. The current market price for the bond is $1,100. Calculate the yield to maturity of the bond