A 2 year bond with 1000 face value and 10% coupon rate is sold for 1000 today. if one year later the market interest rate increases by 5%, then this bond will have a market price of?
now supposes:
a three year bond with 1000 face value and 10% coupon rate is sold for 1000 today. if one year later the market interest rate increases by 5%, then this bond will have a market price of ?
now if that buyer instead bought a 2 year bond with 1000 face value and 10% coupon rate for 1000 today. if one year later the market interest rate increases by 5% and they sell the bond, this his rate of return on this investment is ?