Question: No Name Co issues a bond today that will pay a coupon of 8%, twice a year. The yield to maturity for this company

No Name Co issues a bond today that will pay a coupon

No Name Co issues a bond today that will pay a coupon of 8%, twice a year. The yield to maturity for this company is 4.8%. Calculate the price of this bond if it matures in (a) 6 years, (b) 12, and (c) 22.5 years, knowing that its face value is GBP 10,000. What happens to the price of this bond if at the same day of the issue, the yield to maturity changes to 4.6%? What if the YTM change is to the opposite direction, to 5%?

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