Consider a 10 percent (annual) coupon bond that matures in 25 years, has a par value of 1000 euros,and pays coupon semiannually.

a) What will be the value of this bond in 5 years if you expect this bonds market YTM to decline to 8 percent in 5 years.

b) What will be the value of this bond in 5 years if this bonds market YTM in 5 years is estimated to be higher than 8%?

c) What will be the value of this bond in 5 years if this bonds market YTM in 5 years is estimated to be lower than 8%?