Question: A) Show the work for the pricing a $1000 bond with annual coupon rate of 4%, yield rate of 5% and maturity of 10 years.

A) Show the work for the pricing a $1000 bond with annual coupon rate of 4%, yield rate of 5% and maturity of 10 years. Show work.

B) If the redemption was changed to $1200, would the price go up or down? Explain your answer.

C) What is exact price of this new bond? Show work.

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