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Problem II (Bonds) --- 15 Points You purchase an ABC 10%, 30 Year bond with a $100 face value for 109.72 1) What is the

Problem II (Bonds) --- 15 Points You purchase an ABC 10%, 30 Year bond with a $100 face value for 109.72

1) What is the yield to maturity of the bond?

2) What is the current yield on the bond?

3) What is the duration of the bond?

4) If you bought the bond today and sold it after 1 year at a ytm of 10% what is your cash flow yield ?

5) What is your realized compound yield if you held the bond for 11 years if the reinvestment rate (R) was 11%?

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