Bond Prices:

1. On Jan 1, 2022 the interest rate (yield-to-maturity) on a 20-year Treasury bond was 2.08%. If the bond paid a 2% annual coupon for 20 years and had a par value of $1,000, what price would it have sold for on Jan 1?
2. On Mar. 1^st 2021, the interest rate (yield-to-maturity) on that bond had risen to 2.25%. Again, if a bond paid a 2% annual coupon for 20 years and had a par value of $1,000, what price would it have sold for on Mar. 1^st?
3. Jan 1 to Mr 1 is two months. Assume a year is 12 months. Convert the gain or loss you would have had on an investment in the bond into a compound annual growth rate. Indicate gain or loss by using either (+) or (-) sign.