Unless stated otherwise, interest is compounded annually, and payments occur at the end of the period. Face value for bonds is $1000.

1. Hawk 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. Find the bonds price today. If the yield rises, what do you expect will happen to the bond price?