Question: 3. A 10-year U.S. Treasury bond with a face value of $1,000 pays a coupon of 5.5% (2.75% of face value every six months). The

3. A 10-year U.S. Treasury bond with a face value of

3. A 10-year U.S. Treasury bond with a face value of $1,000 pays a coupon of 5.5% (2.75% of face value every six months). The reported yield to maturity is 5.2% (a six-month discount rate of 5.2/2 = 2.6%). a) What is the present value of the bond? b) If the yield to maturity changes to 1%, what will be the present value? c) If the yield to maturity changes to 8%, what will be the present value? d) If the yield to maturity changes to 15%, what will be the present value? 4. Hitachi Corporation currently pays a dividend of $0.5 per quarter, and it will continue to pay this dividend forever. What is the ex-dividend price per share if its equity cost of capital is 15% per year

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