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2 2. A S1000 bond with a coupon rate of 10%, interest paid semiannually, matures in eight years and sells for $1120. What is the

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2. A S1000 bond with a coupon rate of 10%, interest paid semiannually, matures in eight years and sells for $1120. What is the yield to maturity? Show your inputs. 3. If a 7% coupon (semiannual) bond purchased at par sells 2 years later for $990, what is the realized rate of return (annualized)? Show your inputs. 4. You have the following prices for treasury bonds: 1-year interest rate today is 5% 1-year forward interest rate 1 year from now is 7% 1-year forward interest rate 2 years from now is 9% a. Draw the timeline for this series of interest rates b. What is the interest rate on a 3-year treasury bond today

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