1 A $1,000 par value bond has a 7 percent coupon, which is paid on a semiannual basis. It matures in either 1 year or 10 years. Current yields on similar bonds are either 6 percent or 10 percent. a. Calculate the price of the bond for the four possibilities. (Use a Financial calculator to arrive at the answers. Do not round intermediate calculations. Round the final answer to 2 decimal places.) Skipped Price of the bond $ $ 1 year 1 year 10 years 10 years 6 percent 10 percent 10 percent 6 percent $ $ b. What is the relationship between price and yield? Price and yield are (Click to select) v related. c. What is the relationship between bond price changes and time to maturity? Bond prices change (Click to select) v for a given yield change. b. What is the relationship between price and yield? Price and yield are(Click to select) vrelated. (Click to select) c. What is the relati Directly bond price changes and time to maturity? Inversely Bond prices change (Click to select) for a given yield change. c. What is the relationship between bond price changes and time to maturity? Bond prices change (Click to select) v for a given yield change. |(Click to select) more for longer terms, less for longer terms