Answer the following questions regarding bond valuation.

a. What is the price of a $1,000 par value bond with an 8% coupon rate paid semi-annually, if the bond is priced to yield 4% and it has 15 years to maturity? (5%)

b. Following a, what would be the price of the bond if the yield rose to 8%? (5%)

c. Following a, what would be the price of the bond if the coupon is paid quarterly? (5%).

d. Explain how the calculation changes, given semi-annual coupons in a versus quarterly coupons in c. (10%)