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XYZ Corporation issued 20-year, noncallable, 4.5% annual coupon bonds at their par value of $1,000 one year ago. Today, the market interest rate on these

XYZ Corporation issued 20-year, noncallable, 4.5% annual coupon bonds at their par value of $1,000 one year ago. Today, the market interest rate on these bonds is 3.0%. a. What is the current price of the bonds, given that they now have 17 years to maturity? Show work, 2 decimals. b. What is the current price of the bond, if coupons are paid semi-annually? Show work, 2 decimals.

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