A 6-Years, 6% coupon-paying bond issued by the PNP a year ago. The following information has been gathered to assist you in valuing this bond:

Face value $ 1000

Coupon rate is 6%

Current maturity is 5 years

Required:

(a)Estimate the price of the bond using the yield to maturity of 0%, 3%, 6% and 9%.

(b)Derive minimum three observations and findings on the relation between changes in yield and bond prices.

(c)Briefly discuss the implications of the findings observed above in (b).