A 19-year us treasury bond with a face value of 1000 pays a


A 19-year U.S. Treasury bond with a face value of $1,000 pays a coupon of 5.00% (2.500% of face value every six months). The reported yield to maturity is 4.8% (a six-month discount rate of 4.8/2 = 2.4%). (Do not round intermediate calculations. Round your answers to 2 decimal places.)

a) What is the present value of the Bond?

b) If the yield to maturity changes to 1% what will be the present value?

c) If the yield to maturity changes to 8% what will be the present value?

d) If the yield to maturity chanegs to 15%, what will be the present value?

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Financial Management: A 19-year us treasury bond with a face value of 1000 pays a
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