The JG investment Bank is about to issue a new series of 10 year bonds. The bonds will have $1000 face value and will be rated AA by a respected Bond Rating Agency. Currently the yield to maturity on AA rated bonds is 240 basis points above the yield on similar maturity government bonds. The bonds will make annual coupon payments.

a. If the YTM on 10 year government bons is 2.4%, what coupon rate should JG choose if it wants the bonds to sell at par?

b. If JG issues 1500, bonds, hwo much capital will they raise from the sale?

c. Two years later, the YTM on 8 year govt bonds has risen to 2.8.% If the yield on AA rated bonds is still 240 basis points higher than a govt bond, what is the new price of the bond (round to nearest 100th)

d. JG's bonds now sell at (premium, par or discount??)

I'm trying to put the formula in on my calculator but it's not computing any of the practice sample answers. I have a regular texas instrument, BA 2 plus.

Thanks