Consider a 10-year bond that pays a 5 percent coupon semi-annually with a face value of $1000.
a. What is the price of this bond if the annualized yield to maturity of 4 percent (i.e., the stated rate is .04 compounded semi-annually)?
b. What is the price of this bond if the annualized yield to maturity of 5 percent (i.e., the stated rate is .05 compounded semi-annually)?
c. What is the price of this bond if the annualized effective rate is 5 percent? How to do in excel?