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1. Consider a 5-year note with a coupon rate of 5%, face value 100, 7% yield-to-maturity, annual compounding a) What is its current yield? b)

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1. Consider a 5-year note with a coupon rate of 5%, face value 100, 7% yield-to-maturity, annual compounding a) What is its current yield? b) Assume_one years pass and the yield-to-maturity is unchanged. What is the new price? c) Calculate the change in price between the two dates under unchanged yield. Add it to the current yield in a). What is this, approximately, and why

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