CSM Corporation has a bond issue outstanding that has 15 years remaining to maturity and carries a coupon interest rate of 6%. Interest on the bond is paid on a semiannual basis. The par value of the CSM bond is $1,000, and it is currently selling for $874.42.
a. What is the bond’s yield to maturity?
b. What would the price be if the yield to maturity were 2% higher than in part a?
c. What would the price be if the yield to maturity were 2% lower than in part a?