Question
1) considering the purchase of a $1,000 face value bond that pays 11% APR coupon interest but paid semi-annually. The bond matures in 20 years
1) considering the purchase of a $1,000 face value bond that pays 11% APR coupon interest but paid semi-annually. The bond matures in 20 years and has a current market price of $931.18. What is the bonds yield to maturity expressed as an annual% rate APR?
2) considering the sale of the $1,000 face value bond that pays 11% coupon interest, but paid semi-annually, that you bought in part a. As above, you paid $931.18 for the bond when you bought it five years ago and it now has 15 years to maturity. If you decide to sell your bond at the price of $975, what was your realized return as an annual % rate APR ?
Excel or calculation inputs wanted
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