Problem:
A 1,000 bond has a coupon rate of 8% and matures after ten years.
Required:
What is the current price of the bond if the comparable rate of interest is 8%?
What is the current price of the bond if the comparable rate of interest is 10%?
What are the current yields given the prices determined in parts a and b?
Why are the prices in a and b and the current yields in c different?
Note: Please provide full description.