You are thinking about investing in a $1,000 face value bond which will mature in four years. The bond has a 10% coupon rate and pays coupon semiannually. The current yield to maturity on similar bonds is 8% per year.

a. What is the bonds price today?

b. What will be the bonds price in six months immediately after the first coupon payment if the yield drops to 6%?

c. What will be the bonds price in 12 months immediately before the second coupon payment if the yield goes up to 10%?