Response to the following problem:
Value the bond Midcorp has issued, with the following characteristics:
Par: $1,000.
Time to maturity: 28 years.
Coupon rate: 7.50 percent.
Semiannual payments.
Calculate the price of this bond if the yield to maturity (YTM) is each of the following:
7.50 percent.
9 percent.
4 percent.