CSM Corporation has a bond issue outstanding at the end of the year. The bond has 15 years remaining to maturity and carries a coupon interest rate of 6%. Interest on the bond is compounded on a semiannual basis. The par value of the CSM bond is $1,000 and it is currently selling for $874.42.

a. Solve for the yield to maturity. Show your work.

b. Solve for the price of the bond if the yield to maturity is 2% higher. Show your work.

c. Solve for the price of the bond if the yield to maturity is 2% lower. Show your work.

d. What can you summarize about the relationship between the relationship between the price of the bond, the par value, the yield to maturity, and the coupon rate?