A 10-year US Treasury bond with 5% coupon (paid semi-annually) is trading in the market for a price of 100-10 (note: the price is in 32nds). You purchased the bond with a face value of $10,000.

a. Calculate the YTM of the bond. (Hint: Use IRR in your financial calculator or IRR or Goal Seek in Excel).

b. Calculate the current yield.

c. Assume after 4 years, you still hold the bond and it is trading at 6% YTM. Calculate its new price.