Question: ABC Corp has issued a 10-year bond with a face value of $1,000, a coupon rate of 5%, and semi-annual coupon payments. The bond is

ABC Corp has issued a 10-year bond with a face value of $1,000, a coupon rate of 5%, and semi-annual coupon payments. The bond is currently priced at $1,050. Calculate the following:

a) The semi-annual coupon payment.

b) The yield to maturity (YTM). c) The current yield.

d) The modified duration.

e) If interest rates increase by 1%, what would be the new price of the bond?

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