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Sky Train Inc. originally issued 10-year bonds with a face value of $1000 at par. The bonds have a coupon rate of 8%, and coupons

Sky Train Inc. originally issued 10-year bonds with a face value of $1000 at par. The bonds have a coupon rate of 8%, and coupons are paid semiannually. The bonds will mature in 6 years, and the yield to maturity is 6.4% with semiannual compounding.

a. Find the bond's price today.

b.If the yield rises, what do you expect will happen to the bond price?

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