part one

consider a ten year, $1000 bond with an 6% coupon rate and annual coupons is trading with a YTM of 6%. its bond price is $____

part two

suppose that after you purchased the bond in the problem above the YTM increases to 8%, the bond price will become $_____

part three

the bond in part tow is trading

at a discount

at par

at a premium

need more information to determine