Question: Your company issues 7% coupon bonds with a face value of $1,000. Suppose these bonds have 9 years to maturity, make semiannual payments, and have

Your company issues 7% coupon bonds with a face value of $1,000. Suppose these bonds have 9 years to maturity, make semiannual payments, and have a yield to maturity of 10%.

6a. What is the current price of the bonds?

6b. If interest rates fall to 5%, what would the price be?

either explain the keystrokes on the calculator, or write the formula (with numbers!).

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