Please refer to the excel table below.

Assuming a bond just issued and the coupon and the yield are equal at 5%. After the bond issuance certain market conditions change and the bond has appreciated by 15%. What must the yield move to?

What if market conditions changed again and the bond is now trading at 15% below the original issuance amount. What yield would cause such a price?

Financial Analysis and Financial Risk Management Bonds and Bond Math Bond Issuance Issuance Date Current Date Maturity Coupon Current Trading Amount Yield to maturity 1,000 5-Jun-18 6-Jun-18 5 Years 5% 1,000.0 5.00% 2 50.0 3 50.0 4 50.0 5 50.0 50.0 Coupon Principal 1,000.0 Expected Cashflow PV @ Yield rate 50.0 47.6 50.0 45.4 50.0 43.2 50.01,050.0 41.1822.7 Sum of PV's Investment 1,000.0 (1,000.0) NPV