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##### How do you compute the change in the price of a five-year (until maturity) \$1,000

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1. How do you compute the change in the price of a five-year (until maturity) \$1,000 face value zero-coupon bond that currently yields 7% when expected inflation increases from 3% to 4%?;2. Calculate the price of a \$1,000 face value bond that offers a \$45 annual coupon, and has six years to maturity, when the interest rate is 6.0% (0.060)?;3. Calculate the price of a zero coupon bond that has an interest rate of ^.65% (.0665), a face value of \$100.00 and six months to maturity.;4. consider a \$1,000 face value bond with a \$55 annual coupon and 10 years until maturity.;calculate the coupon rate, and the current yield, under each of the following;a) the bond is purchased for \$940.00;b) the bond is purchased for \$1,130.00;c) the bond is purchased for \$1,000;Additional Requirements;Level of Detail: Show all work

Paper#25996 | Written in 18-Jul-2015

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