Question: 12) (6 pts) One year ago (2017) Alpha issued 10 year bonds that had a yield to maturity of 5.4% (compounded semi-annually). The coupon rate

12) (6 pts) One year ago (2017) Alpha issued 10 year bonds that had a yield to maturity of 5.4% (compounded semi-annually). The coupon rate of these bonds is 5.4% and pay interest semi- annually. Today (2018) the yield to maturity on these bonds has decreased to 4.8% (compounded semi-annually) a) What was the price of these bonds when they were issued (2017)? b) What is the price of these bonds if they were sold today (2018)

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