Question: Please help solve for B Consider a five-year, default-free bond with annual coupons of 8% and a face value of $1,000 and assume zero-coupon yields

Please help solve for B

Please help solve for B Consider a five-year, default-free bond with annual

Consider a five-year, default-free bond with annual coupons of 8% and a face value of $1,000 and assume zero-coupon yields on default-free securities are as summarized in the following table: Maturity Zero-Coupon Yields 1 year 7.00% 2 years 7.30% 3 years 7.50% 4 years 7.70% 5 years 7.80% a. What is the yield to maturity on this bond? b. If the yield to maturity on this bond increased to 8.20%, what would the new price be? a. What is the yield to maturity on this bond? The yield to maturity on this bond is 7.752 %. (Round to three decimal places.) b. If the yield to maturity on this bond increased to 8.20%, what would the new price be? The new price would be $ . (Round to the nearest cent.)

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