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Q1. assume that you considering the purchase of a 30 year bond with an annual coupon rate of 8.0% the bond has a face value

Q1. assume that you considering the purchase of a 30 year bond with an annual coupon rate of 8.0% the bond has a face value of 1000$ and make semiannual interest payments. if you require an 12.0% nominal YTM on this investment, what is the maximum price you should be willing to pay for this bond?

Q2. Assume that you are considering the purchase of a 10 year bond with an annual coupon rate of 6.5% the bond has a face value of 1000$ and makes semiannual interest payments. the bond is selling for 895$ what is the capital gain yeild if you purchase this bond at 895$

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