What is the present value of the bond

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Reference no: EM131925251

Question: A 25-year U.S. Treasury bond with a face value of $1,000 pays a coupon of 5.50% (2.750% of face value every six months). The reported yield to maturity is 5.2% (a six-month discount rate of 5.2/2 = 2.6%). (Do not round intermediate calculations. Round your answers to 2 decimal places.)

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?

Reference no: EM131925251

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