PLEASE SHOW CALCULATION ON HOW TO FIND PART C. Thank you!

1. Bond cash flows, bond pricing: A 7-year maturity bond with a coupon rate of 2% makes semiannual coupon payments. It has a face value of 1000. a. What is the price of this bond if the yield to maturity is 2.2%? There are 14 semi-annual periods, the coupon payment is 10 (=1000*0.02/2) and the per period yield is 0.011: (10/0.011)(1-1/(1.011)14) + 1,000/1.011414=987.09 (The quoted price is 98.71) b. Is the bond a premium or a discount bond? This is a discount bond. (It is trading below par, though only a little bit.) c. News reaches the market that the bond's yield to maturity has gone down to 2%. What is the new bond price? 1,000 (quoted price is 100)