Problem #$5$:

A $10-$year bond has face value $($redemption value$)$ $$600,000$ and quarterly coupons of $4\%.$ Consider the time right after the $12$th coupon has been paid, when the yield is $6\mathrm{.}6\%.$

$($a$)$ What is the price of the bond?

$($b$)$ Compute the price of the bond if the yield were to increase by $1$ basis point $($a basis point is $1/100$ of $1\%).$ What is the absolute value of the difference between that price, and your answer to part a$)?$

$($c$)$ Would the yield have to increase or decrease in order for the bond to increase in value by $$2748\mathrm{.}29?$

$($d$)$ Based only on your answer to b$),$ approximately how many basis points $($bp$)$ would the yield have to move in order for the bond to increase in value by $$2748\mathrm{.}29?$

$($Answer as a positive integer.$)$

Problem #$5($a$)$:

Answer correct to $2$ decimals.

Problem #$5($b$)$:

Answer correct to $2$ decimals.

$($A$)$ Decrease $($B$)$ Increase

Problem #$5($c$)$:

Select

Problem #$5($d$)$:

Answer as a positive integer