Intro

A corporate bond has $20$ years to maturity, a face value of $$1,000,$ a coupon rate of

$5\mathrm{.}5\%$ and pays coupon twice a year. The annual market interest rate for similar

bonds is $3\mathrm{.}1\%.$

Part $1$

What is the price of the bond $($in $$)?$

Previous answers: $1070\mathrm{.}76$

Part $2$

$2$ years later, the market interest rate for similar bonds has gone up to $4\mathrm{.}1\%.$ What

is the new price of the bond $($in $ $)?$