Question 1 options:
A bond has a $1,000 par value, 15 years to maturity, and a 8% annual coupon rate and is now selling for $983.
What's the yield to maturity of this bond?
Assume that the yield to maturity remains constant for the next 2 years. What will the price be 2 years from today?
Question 2
The current yield to maturity (YTM) of a 30-year coupon bond with $1,000 par value, 7.5% coupon rate and semi-annual payment is 4.61%. Let's assume that in 5 years, the YTM on this increases to 6.45%. What will the price be for this bond in 5 years?