A $$1,000$ bond has a coupon of $5$ percent and matures after $8$ years. Assume that the bond pays interest annually.

a$.$ What would be the bond's price if comparable debt yields $7$ percent? Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar.

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c$.$ Why are the prices different in a and $b?$

d$.$ What are the current yields and the yields to maturity in a and $b?$ Round your answers to two decimal places.

The bond matures after $8$ years:

The bond matures after $4$ years:

the question. Round your answer to the nearest dollar.

Bond part $a$:$

Bond part $b$:$

f$.$ Calculate the percentage change in the price of each bond. Round your answers to one decimal place. Enter your answers as a positive value.

Bond part $a$ :

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$\%$

Bond part $b$ :

of