A $1,000 bond has a coupon of 8 percent and matures after twelve years. Assume that the bond pays interest annually. What would be the bond's price if comparable debt yields 10 percent? Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar.

$

What would be the price if comparable debt yields 10 percent and the bond matures after six years? Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar.

$

Why are the prices different in a and b?
The price of the bond in a is
less
than the price of the bond in b as the principal payment of the bond in a is
further out
than the principal payment of the bond in b (in time).

What are the current yields and the yields to maturity in a and b? Round your answers to two decimal places.

The bond matures after twelve years:

CY:
%
YTM:
%

The bond matures after six years:

CY:
%
YTM:
%