Suppose Ford sold an issue of bonds with a $16-$year maturity, a $$1200$ par value, a $10\%$ coupon rate, and semiannual interest payments $($which are determined by half of the

coupon rate$).$ Please use the factor formulae to solve the questions below:

$($a$)$ Two years after the bonds were issued $($after the $4^{th}$ coupon amount payments$),$ the going rate of interest on bonds such as these fell to $7\%($compounded semi$-$annually$).$

At what price would the bonds sell?

Sell price $=$$

$($keep $2$ decimal places$)$

$($b$)$ Suppose that, two years after the bonds' issue $($after the $4^{th}$ coupon amount payments$),$ the going interest rate had risen to $14\%($compounded semi$-$annually$).$ At what price

would the bonds sell?

Sell price $=$$

$($keep $2$ decimal places$)$