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A newly issued 1 0 - year corporate bond with a coupon rate of 4 % and a face value of $ 1 , 0

A newly issued

10 -

year corporate bond with a coupon rate of

4 %

and a face value of $

1, 000 .

What is the fair price of the bond when the yield to maturity is

8 %

One year after, the yield to maturity is adjusted to

6 %,

what is the new bond price and what is the

%

change of bond price

What is the total return for holding this bond in the year?

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