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1.There is a 20 year couponed-bond with a face value of $1000 dollars with 6.00% interest compounded semiannually. I buy it from a friend that
1.There is a 20 year couponed-bond with a face value of $1000 dollars with 6.00% interest compounded semiannually. I buy it from a friend that needs some cash 2 years into its maturity (i.e. 18 years left until maturity) for the face value of $1000. What's the current value of the bond, did I make a bad investment?
2.If I have 30-year government bonds with a face value of $20,000 which makes semiannual coupon payments and has a coupon rate of 1.38%. What is the yield to maturity if the bonds are selling for $25,000 and $31,000, respectively?
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