What is the present value of the bond

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A 11-year U.S. Treasury bond with a face value of $1,000 pays a coupon of 5.75% (2.875% of face value every six months). The reported yield to maturity is 5.4% (a six-month discount rate of 5.4/2 = 2.7%). (Do not round intermediate calculations. Round your answers to 2 decimal places.)

a. What is the present value of the bond?

Present value ____________ $

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

Present value _____________ $

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

Present value _____________ $

d. If the yield to maturity changes to 15%, what will be the present value?

Present value ____________ $

Reference no: EM132483106

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