Question B2 (15 marks) B2(a) A company has just issued a 6% coupon, 10-year bond. The credit rating is BBB. The par value of the bond is $1,000 and the coupons are paid semi-annually. What is the current price of the bond if it offers a yield to maturity (YTM) of 4.8%? (8 marks) B2(b) What is the effect of a bond's YTM on its price? (3 marks) B2(c) How does the credit rating of a bond affect its YTM and price? (4 marks) ****************************************************************************