Atlantis has been planning to develop a new warning system. The installation of the system costs more than what their budget allows so the mayor decides to issue a 20-year bond to finance the project. The bonds have a face value of $1,000 and it promises a coupon rate of 6.6% which will be paid quarterly to the bond holders.

Calculate the price you have to pay to purchase the bond if

1. The Yield to Maturity (YTM) is 5.6% (annually)
2. The Yield to Maturity (YTM) is 8.0% (annually)

Let's assume you would like to buy 50 bonds issued by Atlantis with a 20-year tenure. If the YTM is 7.2% and the coupon rate is 6.6%, calculate how much more you have to pay when you purchase a bond which makes annual coupon payments rather than quarterly.