Question: I have attached the problem. Please provide the work by hand. Thank you very much in advance. 1. Practice Problem: Calculate price of a 20-year

I have attached the problem. Please provide the work by hand. Thank you very much in advance.

1. Practice Problem: Calculate price of a 20-year bond that makes semi- annual coupon payments. The annual coupon rate is 8%, the face value is $1, 000, and the interest rate is 8% per year. By how much would the price of the bond change if the interest rate were to (a) drop to 7%, (b) increase to 9%? What is the relationship between the level of interest rates and bond prices? Is the price of a bond more sensitive to increases or decreases in the interest rates

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