Problem $\backslash$#$5$: A $10-$year bond has face value $($redemption value$)\backslash (\backslash$$ $650,000\backslash )$ and quarterly coupons of $\backslash (3\mathrm{.}5\backslash \%\backslash ).$ Consider the time right after the $12$th coupon has been paid, when the yield is $\backslash (6\mathrm{.}1\backslash \%\backslash ).($a$)$ What is the price of the bond? $($b$)$ Compute the price of the bond if the yield were to increase by $1$ basis point $($a basis point is $\backslash (1/100\backslash )$ of $\backslash (1\backslash \%\backslash )).$ What is the absolute value of the difference between that price, and your answer to part a$)?($c$)$ Would the yield have to increase or decrease in order for the bond to increase in value by $\backslash (\backslash$$ $1008\mathrm{.}35\backslash )?($d$)$ Based only on your answer to b$),$ approximately how many basis points $($bp$)$ would the yield have to move in order for the bond to increase in value by $\backslash (\backslash$$ $1008\mathrm{.}35\backslash )?($Answer as a positive integer.$)$ Problem $\backslash$#$5($a$)$: Problem $\backslash$#$5($b$)$: Answer correct to $2$ decimals. Answer correct to $2$ decimals. $($A$)$ Increase $($B$)$ Decrease Problem $\backslash$#$5($c$)$: Problem $\backslash$#$5($d$)$: Answer as a positive integer Your work has been saved! $($Back to Admin Page$)$