There is a bond with FV = 1000, coupon rate of 10% paid annually
and 5 year maturity. At year 0, YTM = 8%.
Given constant YTM, what is the bond price at time 1?
What is capital gain yield and current yield?
What are the prices of the bond in year 2, 3, 4, and 5?
If at year 1, YTM becomes 12%, what is a bond price in year
1?