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A bond has the following features:Coupon rate of interest: 5%Principal: $1,000Term to maturity: 10 y

A bond has the following features:Coupon rate of interest: 5%Principal: $1,000Term to maturity: 10 yearsA. What will the holder receive when the bond matures?B. If the current rate of interest on comparable debt is 8%, what should be the price of this bond? Would you expect the firm to call this bond? Why?C. If the bond has a sinking fund that requires the firm to set aside annually with a trustee sufficient funds to retire the entire issue at maturity, how much must the firm remit each year for ten years if the funds earn 8% annually and there is $100 million outstanding?Please show all work. Thank you!

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