The yield of the 10-year US Treasury bond is 1.20%. It is the risk-free rate. You work for investment manager and your boss asks you to calculate the price of a 10-year corporate bond that yields 3.00% more than its risk-free rate and has a face value of $1,000. The fixed coupon of this corporate bond is 5.00%. Both bonds pay coupons annually.

What is the current price of the corporate bond?

Calculate the price of the bond if its yield increased by 1.00%.

Calculate the price of the bond if its yield decreased by 1.00%

The current price of the corporate bond is $1,000. An initial investment of $1,000 is required to purchase the bond. The fixed coupon rate on the corporate bond is 5%, this is 3% greater than the risk-free rate, which is 1.20%.

If the yield of the bond were to rise by 1%, the price of the bond would be $984, this is due to the decline of the bonds price as rates increase.

If the yield of the bond were to fall by 1%, the value of the bond would also experience a rise to $1,151.

Are my answers to these questions correct? If not plewase help.