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CSM Corporation has a bond issue outstanding that has 15 years remaining to maturity and carries a coupon interest rate of 5%. Interest on the

CSM Corporation has a bond issue outstanding that has 15 years remaining to maturity and carries a coupon interest rate of 5%.

Interest on the bond is paid on a semiannual basis. The par value of the CSM bond is $1,000,and it is currently selling for $798.63.

a. What is the bond's yield to maturity?

b. What would the price be if the yield to maturity were 3% higher than in part a?

c. What would the price be if the yield to maturity were 3% lower than in part a?

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