Consider a bond selling at par of $1,000 with a coupon rate of 5% semi-annual coupon payment, and 10 years to maturity. (a) What is the price of this bond if the required yield is 15%? (b) What is the...

Consider a bond selling at par of $1,000 with a coupon rate of 5% semi-annual
coupon payment, and 10 years to maturity.
(a) What is the price of this bond if the required yield is 15%?
(b) What is the price of this bond if the required yield increases from 15% to 16%,
and by what percentage did the price of this bond change?
(c) What is the price of this bond if the required yield is 5%?
(d) What is the price of this bond if the required yield increases from 5% to 6%, and
by what percentage did the price of this bond change?
(e) From your answers of parts (b) & (d), what can you say about the relative price
volatility of a bond in a high-interest-rate environment compared to a
low-interest-rate environment?