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One year ago a par $1,000 20-year coupon bond with semiannual coupon payments was issued. The annual interest rate (that is, the coupon rate) at

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One year ago a par $1,000 20-year coupon bond with semiannual coupon payments was issued. The annual interest rate (that is, the coupon rate) at that time was 8.5 %. Now, a year later, the annual interest rate is 7.6 %. What are the coupon payments? What is the bond worth now? Assume that the second coupon payment was just received, so the bondholder receives an additional 38 coupon payments, the next one in 6 months. What would the bond be worth if instead the second payment were just about to be received

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