A bond with a face value $$2345$ and a semi$-$annual coupon of $4\mathrm{.}3\%$ was originally

purchased five years ago. It had, when purchased, $23$ years to maturity. When purchased

the bond was priced to yield $5\%.$

a$.$ When the bond was first purchased

i$.$ How many payments was this bond going to make?

ii$.$ What was the value of each payment?

iii. Draw a timeline of the dates and amounts of all the payments associated

with the bond.

iv$.$ What price was the bond originally sold for?

b$.$ Now the bond market has changed, and other comparable bonds are offering a

yield of $6\%.$

i$.$ Now, how many payments are left for this bond to make?

ii$.$ What is the value of each payment?

iii. Draw a timeline of the dates and amounts of all the payments associated

with the bond that remain.

iv$.$ What price will the bond sell for today?