XLR Corporation just issued a $$1,000$ par value bond with a $7\%$ yield to maturity, twenty years

to maturity, with an $8\%$ semi$-$annual coupon rate.

a$.$ What is the price of the XLR Corporate bond? $[2$ marks$]$

b$.$ If market interest rates are constant, what will the price of the XLR Corporate bond

be in three years? $[2$ marks$]$

c$.$ If market interest rates rise to $10\%,$ what will the price of the XLR Corporate bond be

in three years? $[2$ marks