### Calculate the Price of a Bond Given Various Interest Rates

A bond has a face value of $100, a coupon rate of 8% and 5 years to redemption at par. The annual interest payment has just been made. (a) What is the price of the bond if market interest rates are; (i) 6% (ii) 7% (iii) 8% (iv) 10% (b) What is the duration of the bond if market interest rates are 7%? (c)