What is the change in the price of this bond

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1. A 12-year, 5% coupon bond pays interest annually. The bond has a face value of $1,000. What is the change in the price of this bond (give me a percentage change) if the market yield rises to 6% from the current yield of 4.5%?

Please show work based on financial calculator solution.

2. Big Al's Pawn shop charges 3% per month to its customers. Like all lenders, Al must report an APR (annual percentage rate) to his customers. What APR must Al report? What EAR (effective annual rate) must he report?

Reference no: EM131853597

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