Question: A 28 -year U.S. Treasury bond with a face value of $1,000 pays a coupon of 5.25% ( 2.625% of face value every six months).

A 28 -year U.S. Treasury bond with a face value of

A 28 -year U.S. Treasury bond with a face value of $1,000 pays a coupon of 5.25% ( 2.625% of face value every six months). The reported yield to maturity is 5.0% (a six-month discount rate of 5.02=2.5% ). a. What is the present value of the bond? b-1. If the yield to maturity changes to 1%, what will be the present value? b-2. If the yield to maturity changes to 8%, what will be the present value? b-3. If the yield to maturity changes to 15%, what will be the present value? Note: For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places

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