Question
3.27: Consider an annual coupon bond with 4% coupon rate, $1,000 face value and 15 year term. Its yield to maturity is 3%. How much
3.27: Consider an annual coupon bond with 4% coupon rate, $1,000 face value and 15 year term. Its yield to maturity is 3%. How much of its value is coming from the present value of its face value? Answer in percent rounded to one decimal place.
3.30:Consider a 10-year semi-annual 4% coupon bond with $1,000 face value. Suppose its YTM went up from 5% to 6%. How much would its value change in response? Calculate value change as new value minus old value, rounded to the nearest dollar. If the price dropped, the answer is negative, and vice versa.
PLEASE ANSWER BOTH ON PAPER AND NO EXCEL, trying to learn how to do it for my exam. Thank you
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