Consider a bond with semiannual payments with 10 years to maturity, coupon of 10%, 8% as Yield to Maturity (YTM),and face value of 1000,

a. Find the price of the bond at t=0.

b. Interest rates drop by 1% after 1 year. Find the new Price of the bond.

c. Interest rates drop to 0% after two years from time 0. Find the new price.

d. Interest rates turn negative to -5% after 3 years from t= 0. Find the new price of the bond.