A 10-year semi-annual payment ($1,000 par value) corporate bond has a market price of 110% of par. The corporate bond has a 10% coupon rate, and its required rate of return is 8%. Show all excel calculations.

a) As a bond trader you are looking for investment opportunities by finding bonds that sell in the market for less than what the bond is worth. By how much is this bond mispriced in the market (in $) ?

b) If the market price of the bond increases to $1,200, what is the yield to maturity? Assume that the maturity is still 10 years. Report the YTM as an APR to two decimals (for example, 1.23%).