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II (Bonds) 15 points You purchase a US 10, 30 year, $100 face value bond today at a price of $90 a) What is
II (Bonds) 15 points You purchase a US 10, 30 year, $100 face value bond today at a price of $90 a) What is your yield to maturity? b) Your current yield. Is it higher or lower that your YTM? Why? c) What is your holding period yield if you sell it at the end of 5 years a a ytm of 11.17% d) Your Realized compound yield over 5 years if you reinvest all coupons at 11.17 percent per year? e) What is the Duration of the bond? f) What is your percentage gain of loss if interest rates rise by 25 basis points?
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