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How would the price of the bond be affected by a change in the going market interest rate? ( Hint: Conduct a sensitivity analysis of

How would the price of the bond be affected by a change in the going market interest rate? (Hint: Conduct a sensitivity analysis of price to changes in the going market interest rate for the bond. Assume that the bond will be called if and only if the going rate of interest falls below the coupon rate. This is an oversimplification, but assume it for purposes of this problem.) Round your answers to the nearest cent.
Nominal market rate Actual bond price
0% $ fill in the blank
2% $ fill in the blank
4% $ fill in the blank
6% $ fill in the blank
8% $ fill in the blank
10% $ fill in the blank
12% $ fill in the blank
14% $ fill in the blank
16% $ fill in the blank
Now assume the date is October 25,2020. Assume further that a 13%,10-year bond was issued on July 1,2020, pays interest semiannually (on January 1 and July 1), and sells for $1,080. Again, it may be called in 4 years from the date of issue at a call price of $1,050. Use your spreadsheet to find the bond's yield. Round your answers to two decimal places.
Yield to maturity: ?
Yield to call: ?

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