1. ABC has issued a $1000 par bond with 25 years to maturity, 7% coupon rate, and semi-annual payments. Calculate the present value if the bond if the YTM is 7%.
2. How would the answer to 1 change if the YTM is 9%?
3. How would the answer to 1 change if the YTM is 5%?
4. What bond relationship are Problems 1-3 discussing?