Question: A 21 year U.S. treasury bond with a face value of $1,000 pays a coupon of 5.75% (2.875% of face value every six months). The

A 21 year U.S. treasury bond with a face value of $1,000 pays a coupon of 5.75% (2.875% of face value every six months). The reported yield to maturity is 5.4% (a six month discount ratio of 5.4/2 = 2.7%) Do not round intermediate calculations. Round your answer to 2 decimal places.

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?

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