You find a bond with 21 years to maturity that has a semiannual coupon rate of 4.1 percent, a yield to maturity of 3.9 percent, and a par value of $5,000. What is the dollar price of the bond? Suppose that the price of the bonds fell $5 from yesterday's price. Did interest rates move up or down on this day?

Problem #2 (10 points) You find a bond with 21 years to maturity that has a semiannual coupon rate of 4.1 percent, a yield to maturity of 3.9 percent, and a par value of $5,000. What is the dollar price of the bond? Suppose that the price of the bonds fell SS from yesterday's price. Did interest rates move up or down on this day? Par value (% of par) Coupon rate Yield to maturity Settlement date Maturity date Coupons per year Par value (S) 100 4.10% 3.90% 1/1/20 1/1/41 2 5,000 S