Answer the following questions dealing with bonds

a. What is the major determinant of bond prices? Explain your answer (2)

b. The ABC bond carries a 6.5% semi-annual coupon rate and matures in 23 years. If the market yield on these bonds is 8%, calculate the price of the bond. (3)

c. If interest rates (yields) do not change in the marketplace, explain what happens to the price on a discounted bond as time goes by. Explain why that occurs. (2)

d. If John purchased the bond at $1,050, what would his yield to maturity be if the stated rate is 6% (compounded semi-annually) and maturity 10 years? (3)