1. General Electric Corporation has a $1000 par value bond paying annual interest of 7%. The bond will mature in 20 years. The current yield to maturity for this bond is 9%.

A. What is the annual coupon payment?

b What is the current price of the bond?

C. Does par value change if the yield to maturity changes? (yes / no)

D. Does the coupon rate change if the yield to maturity increases? (yes / no)