Question: A Treasury bond with 100 maturity value has a 8 annual coupon and 5 years left to maturity. i. What price will the bond sell

A Treasury bond with 100 maturity value has a 8 annual coupon and 5 years left to maturity. i. What price will the bond sell for assuming that the 5-year yield to maturity in the market is 7%. (Show your calculations) ii. What would be your answer to part (i) if the 5-year yield to maturity in the market is 9%. (Show your calculations) iii. What does your answer to parts (i) and (ii) tell you about the relationship of bond prices and changes in bond yields?

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