Question $3$

Consider a five$-$year bond with a par value of $$2,000$ and a $8\%$ coupon rate. Interest is paid

annually. Calculate the bond price in the following cases

a$.$ Similar bonds in the market have a discount rate or $($YTM$)$ of $4\%.$

b$.$ Similar bonds in the market have a discount rate or $($YTM$)$ of $12\%.$