Suppose that you purchase a $5,000 coupon bond with an annual coupon of 8%, with interest compounded annually, and a maturity of 5 years. If the bond is sold at par how much will it yield?
How much will the price of the bond change if yield changes to 9%?
If yield for 5 year US Treasuries is 7% and inflation expectation is 2% per year over the same period, what is the real yield (per year) over the next 5 years?