Problem 2 (25 marks) Bavarian Inc. wants to issue a 7-year coupon bond. The face value of the bond is $1,000 and the bond makes semi-annual coupon payments. The market now requires a YTM of 6.75% on the bond a) If Bavarian Inc. wants the bond to sell at par, what should be the coupon rate on these bonds? b) What is the expected price of the bond if the coupon rate is 8%? c) If the bond is currently selling for $1,041.30, what is the coupon rate