Consider a bond with the following terms: • 10-years to maturity • $1,000 face value • Coupon are paid 2 times per year • Annual coupon rate is 5% For problems, 1- 3 assume a constant discount rate...

Consider a bond with the following terms:

• 10-years to maturity

• $1,000 face value

• Coupon are paid 2 times per year

• Annual coupon rate is 5%

For problems, 1- 3 assume a constant discount rate across maturities of 6%. Also, assume that the bond will

make its next coupon payment in exactly 1/2 year.

1. Find the current price of the bond