$1.$ Interpreting Bond Yields

Suppose you buy a $7\%$ coupon, $20-$year bond today when it is first issued. If interest rates suddenly rise to $15\%,$ what happens to the value of your bond? Why?

$2.$ Bond Prices

Westco Co$.$ issued $15-$year bonds a year ago at a coupon rate of $5\mathrm{.}4\%.$ The bonds make semiannual payments and have a par value of $$1,000.$ If the YTM of these bonds is $4\mathrm{.}5\%,$ what is the current price of the bond in dollars?

$3.$ Valuing Bonds

Yan Yan Corp. has a $$2,000$ par value bond outstanding with a coupon rate of $4\mathrm{.}7\%$ paid semiannually and $13$ years to maturity. The yield to maturity on this bond is $5\mathrm{.}05\%.$ What is the dollar price of the bond?