i need answers to c

Consider a 2-year, risk-free bond with a coupon rate of 6% (annual coupons) and a face amount

of $1,000.

a.

What is price of this bond if the YTM is 5%? 6%? 7%?

b.

If you buy the bond for $1,000 (YTM = 6%), hold it to maturity and you reinvest the

coupon payment at 5%, what is the annual HPR on your investment?

c.

If you buy the bond for $1,000 (YTM = 6%), then the yield increases to 7%, and you sell

the bond immediately after the first coupon payment (in 1 year), what is your HPR?