The correct answer is: FV= 250; N= 12; PMT= 0.026250*250 = 6.5625; I/Y= 3.5. Press the CPT key and PV to compute the present value of the bond. Therefore, the current price of the bond is 228.86 million.

Question: How would the bond price calculated above change if Xpress-Oh published a profit warning today, stating that the full-year results would be a large loss instead of a healthy profit as expected? Explain verbally, clearly, and in detail how this would affect the pertinent variables in your calculation in part b) above.