There is an 8%, 2-year bond, which we buy now at which point the required rates are 6%. If we intend to sell it in 2 years, when the market rates of interest are 2%, what is the market price of the bond then and now?
A 15 year, 10% bond is selling for $1100, and it is callable in 4 years. What is the required rate of return, if investors keep it till the end? What is the yield to call?