General Electric has an outstanding bond that paid quarterly interest with an annual coupon of 4.25%, with yield to maturity (required rate of return) of 3.85% and a maturity date of February 15, 2028.
a) What is the price ( as a percentage of principal) of the bond with a settlement date of February 15, 2018? If the yield (required rate of return) of this bond goes up 75 basis points what would the new price be?