Consider a five-year, default-free bond with annual coupons of 5 % and a face value of $ 1 comma 000 and assume zero-coupon yields on default-free securities are as summarized in the following table: Maturity 1 year, 4.0% 2 years 4.30% 3 years. 4.5% 4 years 4.7% 5 years 4.8%. Zero-Coupon Yields
a. What is the yield to maturity on this bond?
b. If the yield to maturity on this bond increased to 5.20 % , what would the new price be?