Consider a five-year, default-free bond with annual coupons of 6 %

6% and a face value of $ 1 comma 000

$1,000 and assume zero-coupon yields on default-free securities are as summarized in the following table:

Maturity

1 year

2 years

3 years

4 years

5 years

Zero-Coupon Yields

5.00

5.00%

5.30

5.30%

5.50

5.50%

5.70

5.70%

5.80

5.80%

a. What is the yield to maturity on this bond?

b. If the yield to maturity on this bond increased to 6.20 %

6.20%, what would the new price be?

a. What is the yield to maturity on this bond?

The yield to maturity on this bond is

nothing

%. (Round to three decimal places.)