Question $3$: For each of the following bonds, determine the purchase price and the premium or

discount: $$

a$.$ A $$10,000,7\mathrm{.}75\%$ bond with annual coupons redeemable at par in seven years is bought to yield

$7\mathrm{.}25\%$ compounded annually.

b$.$ A $$100,000,5\%$ bond with interest payable semiannually and redeemable at par on July $15,2031,$

was purchased on April $18,2020,$ to yield $7\%$ compounded semiannually.