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1. A $1,000 bond has a coupon rate of 4 percent and matures after 10 years. a) What is the current price of the bond

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1. A $1,000 bond has a coupon rate of 4 percent and matures after 10 years. a) What is the current price of the bond if the comparable rate of interest is 4 percent? b) What is the current price of the bond if the comparable rate of interest is 6 percent? c) What are the current yields given the prices determined in parts (a) and (b)? d) Why are the prices in (a) and (b) and the current yields in (c) different

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