Calculate price of a bond with a par value of $1,000 with a $50 coupon (paid annually) and matures in 5 years.
Spot Rates:
1 Year: 3%
2 Year- 3.5%
3Year: 4%
4Year: 4.5%
5 Year: 5%
Question 2:
What is the price and Expected rate of return of the bond after the first coupon payment is made?