$.$ A $12-$years $10\%$ coupon bond issued $2$ years ago has $$1,000$ face

value.

a$.$ If the required rate of return for this bond is $10\%,$ how much does

this bond sell for?

b$.$ If one year later, market interest rate $($r$)$ increases to $12\%,$ how

much can you sell this bond for? What is the percentage change

$($increase$/$decrease$)$ in price?

c$.$ If instead, one year later interest rate decreases to $8\%,$ how much

will you sell the bond for? What is the percentage change

$($increase$/$decrease$)$ in price?