1.. CSM Corporation has a bond issue outstanding at the end of 2015. The bond has 15 years remaining to maturity and carries a coupon interest rate of 6%. Interest on the bond is compounded on a semiannual basis. The par value of the CSM bond is

$1,000, and it is currently selling for $874.42.

TO DO Create a spreadsheet similar to the Excel spreadsheet examples located in the chapter for yield to maturity and semiannual interest to model the following:

a. Create a spreadsheet similar to the Excel spreadsheet examples located in the chapter to solve for the yield to maturity.

b. Create a spreadsheet similar to the Excel spreadsheet examples located in the chapter to solve for the price of the bond if the yield to maturity is 2% higher.

c. Create a spreadsheet similar to the Excel spreadsheet examples located in the chapter to solve for the price of the bond if the yield to maturity is 2% lower.

d. What can you summarize about the relationship between the price of the bond, the par value, the yield to maturity, and the coupon rate?