You are given the following information concerning a noncallable, sinking fund debenture:

Principal: $$1,000$

Coupon rate of interest: $8$ percent

Term to maturity: $16$ years

Sinking fund: $3$ percent of outstanding bonds retired annually; the balance at maturity

If you buy the bond today at its face amount and interest rates rise to $13$ percent after three years have passed, what is your capital gain or loss? Assume that the bond pays interest annually. Use Appendix B and Appendix D to answer the question. Use a minus sign to enter the loss amount, if any, as a negative value. Round your answer to the nearest dollar.

$

What proportion of the total debt issue is retired by the sinking fund? Round your answer to the nearest whole number.

$\%$

If the final payment to retire this bond is $$1,000,000,$ how much must the firm invest annually to accumulate this sum if the firm is able to earn $8$ percent on the invested funds? Use Appendix C to answer the question. Round your answer to the nearest dollar.

$