A security has an equilibrium rate of return of 8.00%. For all securities the real risk-free rate is 3.5% and the inflation risk premium is 1.75%. This particular security has a liquidity risk premium of 0.25% and maturity risk premium of 0.85%. This security has no special covenants. What is the default risk premium? Crazy Racoon Fur Trading Company issued a 20-year bond on May 15, 2018 with a 6.00\% coupon. The bond pays interest semi-annually ( 5/15 and 11/15 ) with no special covenants (puts, calls, etc.). The bond will pay off at par (100.00%) or face value at maturity. You decide to purchase the bond and the trade is going to settle on August 30,2020. On that date... a. What is the price of the bond if the yield to maturity is 6.00% ? b. What is the price of the bond if the yield to maturity increases to 7.00% ? c. What is the price of the bond if the yield to maturity falls to 5.00% ? BOND PRICE CALCULATOR