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a 00 Consider three -year bond with Face value f = 1000 and a coupon rate is 10% Paid semi annually suppose the bond is

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a 00 Consider three -year bond with Face value f = 1000 and a coupon rate is 10% Paid semi annually suppose the bond is braded at a price Bo = 1025 . Answer the following questions > Compute the rate of return on this band if an investor bought it today and decided to hold it till maturity. Keep your answer to 2 decimal places 2) Define what it means to yield to maturity 3) Compute yield to maturity on this bond. Keep your answer to four decimal places in all calculations 4 Suppose you bought that bond from the investor at for this the end of year 2. How much would you pay bond if the market interest is 4 % ? keep your answer to 4 decimal places

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