In February 2009 Treasury 6s of 2026 offered a semiannually compounded yield of 3.5965%. Recognizing that coupons are paid semiannually, calculate the bond's price.
Suppose that spot interest rates all change to 4% - a "flat" term structure of interest rates.
a. What is the new yield to maturity for each bond in the table?
b. Recalculate the price of bond A.