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PLEASE SOLVE THE PROBLEM BY HAND, WITHOUT USING A FINANCE CALCULATOR OR EXCEL. THANK YOU. 7.2 The following shows the information of an investment-grade bond.

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PLEASE SOLVE THE PROBLEM BY HAND, WITHOUT USING A FINANCE CALCULATOR OR EXCEL. THANK YOU.

7.2 The following shows the information of an investment-grade bond. Type of Bond Issue Date Maturity Date Face Value Redemption Value Coupon Rate Corporate bond March 2, 2015 March 2, 2021 $1,000 $1,035 9% payable semiannually If the 1-year forward rates are 7% for the first 3 years and 10% for the last 3 years, find the price of the bond at issue. What is the yield to maturity of the bond

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