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Question: consider an tenyear 145 percent annual coupon bond with a...

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Consider an ten-year, 14.5 percent annual coupon bond with a face value of $1,000. The bond is trading at a rate of 11.5 percent. a. What is the price of the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16) Price of the bond b. If the rate of interest increases 1 percent, what will be the bonds new price? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) Bonds new price c. Using your answers to parts (a) and (b), what is the percentage change in the bonds price as a result of the 1 percent increase in interest rates? (Negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) answer to 2 decimal places. (e.g., 32.16) Percentage change d. Repeat parts (b) and (c) assuming a 1 percent decrease in interest rates. (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16) Bonds new price Percentage change

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