(4 marks) Show all work. Answers with no work shown will receive no marks. Six years ago, Bill purchased a $1000 face value bond carrying an 6% coupon and priced to yield 7%, compounded semi-annually. At that time the bonds were to mature in 14 years. The bond market now requires a YTM of 5%, compounded semi-annually. Bill is now considering selling the bonds. a. How often does this bond pay coupons? b. What is the value of the periodic coupon that this bond pays? c. Draw a well-labelled complete timeline, for the life of this bond, indicating timing of price paid and sold for, as well as coupons received and associated with the bond. d. What price did Bill initially pay for each bond? Write out the equation with the values plugged in, then solve. (ie Show your work.)