A General Power bond carries a coupon rate of 8.1%, has 9 years until maturity, and sells at a yield to maturity of 7.1%. (Assume annual interest payments.)
a. What interest payments do bondholders receive each year?
b. At what price does the bond sell? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
c. What will happen to the bond price if the yield to maturity falls to 6.1%? (Do not round intermediate calculations. Round your answer to 2 decimal places.)