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A) Shane Ltd issued 10-year coupon bonds 4 years ago with a coupon rate of 9%. At the time of issue, the bonds sold at

A) Shane Ltd issued 10-year coupon bonds 4 years ago with a coupon rate of 9%. At the time of issue, the bonds sold at par. Today new bonds of similar risk and maturity will pay a coupon rate of 7%. Assuming semi-annual coupon payments and a face value of $1000 per bond, calculate the current market price of the companys bond. B) Breifly explain the relationship between time to maturity and the change in bond prices

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