ONLY NEEDED ANSWERS TO E AND F$.$

A $$1,000$ bond has a coupon of $7$ percent and matures after $8$ years. Assume that the bond pays interest annually.

a$.$ What would be the bond's price if comparable debt yields $8$ percent? Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar.

$

$

c$.$ Why are the prices different in a and $b?$

The price of the bond in $a$ is

than the price of the bond in $b$ as the principal payment of the bond in $a$ is

further out

than the principal payment of the bond in $b($in time$).$

d$.$ What are the current yields and the yields to maturity in a and $b?$ Round your answers to two decimal places.

The bond matures after $8$ years:

CY:

$\%$

YTM:

$\%$

The bond matures after $4$ years:

CY:

$\%$

YTM:

$\%$

question. Round your answer to the nearest dollar.

Bond part $a$ :

Bond part $b$:$

f$.$ Calculate the percentage change in the price of each bond. Round your answers to one decimal place. Enter your answers as a positive value.

Bond part $a$ :

$-$Select$-$

of

$\%$

Bond part $b$ :

$-$Select$-$

$-$Select$-$

of

$\%$