1. Dexter Mills issued20-year bonds a year agoat a coupon rate of11.4 percent. The bonds makesemiannualpayments. The yield-to-maturity on these bonds is9.2percent. Assume the par value is 1,000 USD.

a. What is the current bond price? (i've got the answer for part a) [$1195.84]

b. If thecurrent bond price is 1,050 USD.Should you buy the bond? What would be the price pattern for the bond?

But for part B, i don't know how to deal with.

3. The yield-to-maturity on a bond is the interest rate you earn on your investment if interest ratesdo not change. If you actually sell the bond beforeit matures, your realized return isknown as the holding period yield.Suppose that today, you buy a12 percent annual coupon bond for $1,000.The bond has13 years to maturity.Two years from now, the yield-to-maturityhas declined to 11 percent and you decide to sell. What is your holding period yield?

For Q3, i've done up to these steps but i don't know how to do next.

For 1a and 3 please provide steps and answers for me. thanks a lot.

due in the morning Please help!

3. The yield-to-maturity on a bond is the interest rate you earn on your investment if interest rates do not change. If you actually sell the bond before it matures, your realized return is known as the holding period yield. Suppose that today, you buy a 12 percent annual coupon bond for $1,000. The bond has 13 years to maturity. Two years from now, the yield-to-maturity has declined to 11 percent and you decide to sell. What is your holding period yield? (10 marks) yield-to-maturity (in 2 years)= 12 percent-1 percent=11 percent~ Bond value in 2 years = (0.12 x 1000) x 1 - [1/(1 + 0.11)13-2]) 1000 0.11 (1 + 0.11)13-2 Bond value in 2 years=$1062.07