A $$1000,7\%$ bond redeemable at par in eight years bears coupons payable annually. Compute the premium or discount and the purchase price if the yield, compounded annually, is$6\mathrm{.}5\%$

a

Discount, $$969\mathrm{.}56$

b

Discount, PP$=$$$1030\mathrm{.}44$

c

Premium, $$969\mathrm{.}56$

d

Premium, PP$=$$$1030\mathrm{.}44$