A $$1,000$ bond has a coupon of $6$ percent and matures after $10$ years. Assume that the bond pays interest annually.

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.

$$$

What would be the price if comparable debt yields $7$ percent and the bond matures after $5$ years? Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar.

$$$

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

The price of the bond in a is $-$Select$-$lessgreaterItem $3$ than the price of the bond in b as the principal payment of the bond in a is $-$Select$-$further outcloserItem $4$ than the principal payment of the bond in b $($in time$).$

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 $10$ years:

CY: $\%$

YTM: $\%$

The bond matures after $5$ years:

CY: $\%$

YTM: $\%$

If interest rates increase $100$ basis points $($that is$,$ from $7$ percent to $8$ percent$),$ what are the new prices of both bonds assuming annual compounding? Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar.

Bond part a : $$$

Bond part b : $$$

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 : $-$Select$-$a decreasean increaseItem $11$ of $\%$

Bond part b : $-$Select$-$a decreasean increaseItem $13$ of $\%$