Q1. Consider the following par bond (ie coupon rate=yield): Year: 10 and 20 years . Yld 1.50% and 2.0%

Q1a. based on linear interpolation, what is the expected yield for a 20 year bond ONE year later, assuming yield curve shape stays the same?

Q1b. how much should the 20y bond be priced 1 year later (as a 19 year bond)?

Q1c. if you hold the 20Y for 1 year, what is your total return from the investment assuming yield curve does not change ?

Hint: your total return comes from coupon collection as well as price appreciation or depreciation