Consider a five$-$year annual$-$pay coupon bond with face value $$1,000$ and a coupon

rate of $10\%.$

$($a$)$ What price would you be willing to pay for this bond if the yield to maturity

on similar $5-$year bonds is $8\%?$

$($b$)$ What would the price be if the yield to maturity on similar bonds was $12\%?$

$($c$)$ If the price of the bond is $$1030,$ what is the yield to maturity?

$($d$)$ Suppose you buy the bond for $$1030$ and hold it for $1$ year, at which time you

receive a coupon payment and sell the bond for a price of $$1020.$ What was

your annualized holding period return?