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A $10,000 bond has a coupon of 7% and matures after 8 years. a) What would be the bond's price if comparable debt yields 8%?

A $10,000 bond has a coupon of 7% and matures after 8 years.

a) What would be the bond's price if comparable debt yields 8%?

b) What would be the price if comparable debt yields 8% and the bond matures after 5 years?

c) What accounts for the difference in price between a & b?

d) What are the current yields and the yields to maturity?

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