Please help me with this, along with an explanation.

The goal is to create a table for the rates or return on bonds of varying maturities like the one in the notes for Chapter 4. The bond has a face value of $1000 and is bought at par with a coupon rate of x%. After one year, the market yield on the bond changes to y%.

On your table, show the current yield, the resale price P(t+1) the rate of capital gain and the rate of return for bonds is 1,2,3,4 and 5years to maturity.

Do a second table for the situation where market yields go from 3% to 2%.

Submit the assignment as a (well-formatted) pdf document.

sample answer.

Sample answer: ROR assignment Values for a bond bought at par with face value $1000, with yield to maturity of 10% initially, and 15% after 1 year. Values for a bond bought at par with face value $1000, with yield to maturity of 15% initially, and 10% after 1 year