Question: Bond valuation: ( 1 ) Suppose there is a 1 0 - year, $ 1 0 0 0 bond with an 8 % coupon rate

Bond valuation:
(1) Suppose there is a 10-year, $1000 bond with an 8% coupon rate and semiannual coupons. If the bond's yield to maturity is 7% APR, what is the bond's price?
(2) Assuming the yield to maturity remains constant, what is the price of the bond immediately before it makes its first coupon payment?
(3) Assuming the yield to maturity remains constant, what is the price of the bond immediately after it makes its first coupon payment?
Bond valuation: (1) Suppose there is a 10-year, $1000 bond with

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