Suppose that your firm issued a bond with 10 years until maturity, a face value of $1000, and a coupon rate of 7% (annual payments). The yield to maturity on this bond when it was issued was 6%.

Please round your answer to two decimal places, in dollars. (e.g. 12345.67)

a) What was the price of this bond when it was issued?

b) Assuming the yield to maturity remains constant, what is the price of the bond immediately BEFORE it makes its first coupon payment?

c) What is the holding period return for investors immediately BEFORE the first coupon payment?

d) Assuming the yield to maturity remains constant, what is the price of the bond immediately AFTER it makes its first coupon payment?

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For questions e-g, assume that this bond DOES NOT pay any conpon.

e) What was its price when it was issued?

f) For this zero-coupon bond, suppose it is actually sold for $500, what should the YTM be?

g) What would happen to the price of this zero-coupon bond if the YTM decrease