1. Suppose you buy a 2 year 5% bond that has a yield to maturity (YTM) of 6%. What is the price of the bond?
(Bonds is semi-annual, yield measures is stated a s annual percentage rate)
2. Suppose you bought a 10 year 8% bond for $975. If you sold the bond for $940 after holding it for 2 years, what was your holding period yield?
All bonds are semi-annual. All yield measures are stated as annual percentage rates
3. What is the YTM of a 5 year 8% bond that is currently selling for $1050?
(Bonds is semi-annual, yield measures is stated a s annual percentage rate)