Question
1.Consider a 2-year coupon bond with a face value of 500, a coupon rate of 6 percent, and a yield to maturity of 8 percent.
1.Consider a 2-year coupon bond with a face value of 500, a coupon rate of 6 percent, and a yield to maturity of 8 percent. What is the implied current price of this bond? Round your answer to the nearest cent.
2.Suppose one year ago, you purchased a 2-year coupon bond, with a face value of $1000 and a coupon rate of 4 percent. Suppose you purchased that bond at a price implying a yield to maturity of 4 percent. What would be your realized rate of return if you sold the bond today at $969? Show your answer in percent terms and round it to the nearest .01 percent (e.g., .0159 equals 1.60 percent).
Please help me out this two questions,apperciate.
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