Consider the following bond:

$1,000 Face Value

3% Coupon Rate (paid semi-annually)

25 Years to Maturity

a.) If an investor requires a 1% rate of return (YTM), what price would the investor be willing to pay for the bond?

b.) If an investor requires a 3% rate of return (YTM), what price would the investor be willing to pay for the bond?

c.)If an investor requires a 5% rate of return (YTM), what price would the investor be willing to pay for the bond?