Consider a five-year, 15 percent annual coupon bond with a face value of $1,000. The bond is trading at a market yield to maturity of 12 percent. (a) What is the price of the bond?

b)If the yield to maturity decreases 1 percent,what will be the bond's new price?

c)Using your answers to parts (a) and(b), what is the change in the bond's price a result of the 1 percent decrease in interest rates?