The X, a producer of furniture, issued bonds on January 1, 2007. These bonds had a 16% coupon rate (paid semiannually on June 30 and December 31 of each year), a 1,000 USD par value, an original maturity of 20 years (maturing on December 31, 2026), and, they were sold at their par value. If you use your Financial Calculator app or Excel to solve this question, please show all the input entries clearly.

a - Calculate the yield to maturity on X bonds at the time of their issuance and the price of these bonds on January 1, 2011 if the market’s required rate of return from the bonds is 12% on this date.

b - You plan to purchase an outstanding X bond on December 1, 2021 when the going required rate of return from the bond is 18%. Calculate the price you would be willing to pay for this bond on December 1, 2021.