(Show timeline, workings, and calculation) Consider a 5-year bond with a face value of $400,000 and a semi-annual coupon of $10,000. The market yield is 7.5% p.a.

a. What is the buying price of the bond?

b. We hold the bond for 2.5 years and then sell it at a yield of 7% p.a. What would the selling price be?