Consider a bond with face value of $1,000.The coupon payment is made semi-annually and the yield to

Consider a bond with face value of $1,000.The coupon payment is made semi-annually and the yield to

 maturity on the bond is 12% (effective annual yield). How much would you pay for the bond if:


a) The coupon rate is 8% and the time to maturity is 20 years?

b) The coupon rate is 10% and the time to maturity is 15 years?