A General Power bond with a face value of $1,000 carries a coupon rate of 8.6%, has 9 years until maturity, and sells at a yield to maturity of 7.6%. (Assume annual interest payments.)
a. What interest payments do bondholders receive each year? Interest payments $ _______
b. At what price does the bond sell? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Price $________
c. What will happen to the bond price if the yield to maturity falls to 6.6%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Price will rise or fall by $_______