10, a) A security pays $100 in one year and $100 in two years. The one-year discount rate is 4%, the two- year is 4.92%, what is its price? b) what is the "common" discount rate-ie., the same discount rate is applied to both years-such that it produces the price you calculate in a)? This is known as the security's "yield-to-maturity" (or "yield") 11, a) A security pays $100 in one year and $233 in two years. The one-year discount rate is 4%, the two- year is 4.92%. what is its price? b) What is the security's "yield-to-maturity? 12. A five-year annuity pays $22.94. At a price of $100, what is its yield? 13. what is the percentage price change of the security in #10 if: a) the one-year discount rate increases by 1% the two-year discount rate increases by 1%) both discount rates increase by 1%? the yield-to-maturity increases by 1%? b) d) 14, what is the percentage price change of the security in #11 if the yield-to-maturity increases by 1%? 15, what is the percentage price change of the annuity in #12 if the yield-to-maturity increases by 1%? IV 16. A five-year bond with a 4% coupon and face value of 100, what is its price at a yield-to-maturity of: a) b) c) d) 3% 4% 5% Calculate the percentage price changes from a) to b) and from b) to c). 17. Perform the same calculations as in #16 but change the maturity to 20 years