A company issues both three - and five-year bonds and pays an annual coupon of 8 per cent. The face value of each bond is S1000.

(1). If the yield to maturity is 8%, what would each bond sell for?

(2). If the yield to maturity rises to 9%, what will each bond sell for?  P=10%+(1+9%)3+(1+9%)  

(3). If the yield is 10%, what price will the bond sell for?