Question: answer it with explain it step by step. which eqution did u use he security? ch.10,what is the price today of a 5 year Bond

answer it with explain it step by step. which eqution did u use

he security? ch.10,what is the price today of a 5 year Bond with a 6% coupon (SA) and a YTM of 7%? a) what is the expected price in 1 year if YTM is still 7%? b) What is the expected price in 2 years if YTM is still 7%? n > c) What is the expected price in 2 years if YTM is 8%? d) What is the expected price in 2 years if YTM is 6.5%? n-3 2) What is the realizedyeld if you sell the bond in 2 years and the YTM is 8% (assume reinvestment of coupons at %25) what is the realized yield if you sell the bond in 2 years and the YTM is 6.5% (assume reinvestment of coupons at original YTM of 7%? 4) What is the YTM of a bond priced at $1034 that has 8 years to maturity and a 6% coupon paid semi-annually? B) If you hold the bond to maturity what is the realized yield if you reinvest coupons at 2% per year (196 per six months)

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