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[Chapter 2.9] Consider a bond selling at par ($1,000) with a coupon rate of 6% and 10 years to maturity. (a) What is the price

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[Chapter 2.9] Consider a bond selling at par ($1,000) with a coupon rate of 6% and 10 years to maturity. (a) What is the price of this bond if the required yield is 15% ? (b) What is the price of this bond if the required yield increases from 15% to 16%, and by what percentage did the price of this bond change? (c) What is the price of this bond if the required yield is 5% ? (d) What is the price of this bond if the required yield increases from 5% to 6%, and by what percentage did the price of this bond change? (e) From your answers to Question 9, parts b and d, what can you say about the relative price volatility of a bond in a high-interest-rate environment compared to a low-interest-rate environment

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