Ryngart recently issued 15 year bonds. They have a par value of $1,000 and an annual coupon of 5.7%. Current market rates are 7%. In the space below answer a, b, & c:

a) Should the bond trade at a premium of a discount to par value?

b) What annual $ amount of interest would an investor in one of these bonds receive? c) How much should an investor be willing to pay for the bond?