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Problem 3-6 Bond prices and yields A 22-year U.S. Treasury bond with a face value of $1,000 pays a coupon of 6.00% 73.000% of face
Problem 3-6 Bond prices and yields A 22-year U.S. Treasury bond with a face value of $1,000 pays a coupon of 6.00% 73.000% of face value every six months). The reported yield to maturity is 5.6% (a six-month discount rate of 5.6/2-2.8%) a. What is the present value of the bond? b. If the yield to maturity changes to 1%, what will be the present value? c. If the yield to maturity changes to 8%, what will be the present value? d. If the yield to maturity changes to 15%, what will be the present value? (For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places.) Present value b. Present value C Present value d. Present value 5 $ $ $ 1,034 61 1,564.07 847.53 505.77
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