Question: Exercise 4: A 22-year U.S. Treasury bond with a face value of $1.000 pays a coupon of 6 pereent of face salue. The reported yield

Exercise 4: A 22-year U.S. Treasury bond with a face value

Exercise 4: A 22-year U.S. Treasury bond with a face value of $1.000 pays a coupon of 6 pereent of face salue. The reported yield to maturity is 5.675 a. What is the present value of the bond? b. If the yield to maturity changes to 1%, what will be the prevent salue? c. If the vield to maturity changes to 8 f. what will be the present value? d. If the yield to maturity changer to 15%, what will be the prevent value? Exercise 5: a. The 7.6%. ten-year bond yelds 5.5%. If this yield to maturity remains unchanged. what will be its price one year hence? Assume annual coupon payments and a face salue of 51.000. b. What is the total return to an investor who held the bond over this year

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