$1.$ Oklahoma Instruments has a bond issue outstanding that pays $$62\mathrm{.}50$ annually.

It has a face value of $$1,000,$ and it will mature in eight years. Similar bonds are priced to yield $6\mathrm{.}5\%.$

What would you expect this bond to sell for? If you held this bond until it matures what would your investment yield?$2.$ Assume you have a client who owns the Oklahoma Instruments bond.

Interest rates decrease $\mathrm{.}25\%$ over the coming year and you advise to sell the Oklahoma Instruments bond exactly$$one year from now.

What will be the sale price and what is the return on the investment for the coming year?