7.

A) As with most bonds, consider a bond with a face value of $1,000. The bond's maturity is 27 years, the coupon rate is 14% paid annually, and the market yield (discount rate) is 5%. What should be the estimated value of this bond in one year? Assume the market yield remains unchanged. Enter your answer in terms of dollars, rounded to the nearest cent.

B) As with most bonds, consider a bond with a face value of $1,000. The bond's maturity is 8 years, the coupon rate is 13% paid annually, and the market yield (discount rate) is 4%. What is the bond's Current Yield? Enter your answer as a percentage.