A $1,000 bond has a coupon of 5 percent and matures after twelve years. Assume that the bond pays interest annually.

What would be the bond's price if comparable debt yields 6 percent? Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar. $

What would be the price if comparable debt yields 6 percent and the bond matures after six years? Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar. $

Why are the prices different in a and b? The price of the bond in a is -Select- than the price of the bond in b as the principal payment of the bond in a is -Select- than the principal payment of the bond in b (in time).

What are the current yields and the yields to maturity in a and b? Round your answers to two decimal places.

The bond matures after twelve years: CY: % YTM: %

The bond matures after six years: CY: % YTM: %