Question $1$

A $10-$year, $$1,000$ par value bond with an annual coupon rate of $7\%$ has a yield to maturity of

$5\%.$ Coupon is paid semiannually. What is the price value of a basis point if the yield

decreases to $4\mathrm{.}99\%?$

Question $2$

A $5-$year, $$1,000$ par value bond pays an annual coupon rate of $6\%.$ It is selling at a price of

$958\mathrm{.}42$ and a yield to maturity of $7\%.$ Coupon is paid semiannually. If the price increases by

$$50,$ what is the yield value of the price change for this bond?

$9\mathrm{.}58$

$1\mathrm{.}20$

$7\mathrm{.}00$

$0\mathrm{.}20$