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A bond with $1000 face value, 6% of coupon rate, coupons are paid semiannually, 20 years...

  1. A bond with $1000 face value, 6% of coupon rate, coupons are paid semiannually, 20 years of maturity, the YTM is 5%.
    1. What is the price of the bond
    2. If the risk free rate goes up by 0.5%, what will be the price of the bond.
    3. If you know that the firm will call the bond at the end of year 10, for a value of $1200, what will be the current price?
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