A three-year bond has 8.0% coupon rate and a face value of $1000.
(Problem 1). If the yield to maturity on the bond is 10%, calculate the price of the bond assuming that the bond makes semi-annual coupon interest payments.
(Problem 2). Assuming that this bond trades for $1,112, what is the YTM for this bond assuming that the bond makes semi-annual coupon interest payments? (Compute IRR).