Computer Plc decided to raise the required fund using debt financing;

specifically, the firm issued a long$-$term coupon bond with a par value of $200$

million. It has a coupon of $8\%$ which is paid semi$-$annually and $20$ years to

maturity.

$($a$)$ If the yield to maturity on this bond is now $9\%.$ What is its current price?

$(6$ Marks$)$

$($b$)$ If the company was to issue a new $20-$year bond today, what coupon rate

would they have to offer?

$(3$ Marks$)$

$($c$)$ Describe the factors that can cause the yield of a bond to change?