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Please solve either by financial calculator inputs or manually. Thank you Problem 1 An analyst observes a 20-year, 8% option free bond with semi-annual coupons.

image text in transcribedPlease solve either by financial calculator inputs or manually. Thank you

Problem 1 An analyst observes a 20-year, 8% option free bond with semi-annual coupons. The required semi-annual pay yield to maturity on this bond was 8%, but suddenly it drops to 7.25%. A. As a result indicate what would happen to the price of the bond? B. Prior to the change in the required yield, what was the price of the bond? C. Compute the percentage change in the price of this bond when the rate decreased

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