A 29-year U.S. Treasury bond with a face value of $1,000 pays a coupon of 5.25%...

A 29-year U.S. Treasury bond with a face value of $1,000 pays a coupon of 5.25% (2.625% of face value every six months). The reported yield to maturity is 4.8% (a six-month discount rate of 4.8/2 = 2.4%). (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?

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jeff jeffy answered 1 year ago

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