A) calculate the price of a 5 year corporate bond with a par value of $1000 that makes annual payments, has a coupon of 3% and currently offers a yield to maturity (YTM) of 4%

B) recalculate the price of the bond under the assumption that the bond makes semi-annual coupon payments

c) what risks may an investor who holds these bonds be exposed to? briefly describe how each of them relates to the bond's value