A $$1,000$ bond has a coupon of $4$ percent and matures after $8$ years. Assume that the bond pays interest annually.

$1-$ What would be the bond's price if comparable debt yields $6$ percent? Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar.

$$($ answer $)$

$2-$ What would be the price if comparable debt yields $6$ percent and the bond matures after $4$ years? Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar.

$$($ answer $)$

$3-$ Why are the prices different in a and b$?$

The price of the bond in a is$(-$Select$-$lessgreater $)$than the price of the bond in b as the principal payment of the bond in a is $(-$Select$-$further outcloser $)$ than the principal payment of the bond in b $($in time$).$

$4-$ 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:

CY: $($ answer $)\%$

YTM: $($ answer $)\%$

The bond matures after $4$ years:

CY: $($ answer $)\%$

YTM: $($ answer $)\%$

$5-$ If interest rates increase $100$ basis points $($that is$,$ from $6$ percent to $7$ 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 : $($ answer $)$$$$

Bond part b : $($ answer $)$$$$

$6-$ 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 increase$)$ of $($ answer $)\%$

Bond part b : $(-$Select$-$a decreasean increase$)$ of $($ answer $)\%$