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Question 1. A 20-year bond has a par value of $1000 and an annual coupon rate of 10% and pays coupon semi-annually. Now it has

Question 1. A 20-year bond has a par value of $1000 and an annual coupon rate of 10% and pays coupon semi-annually. Now it has 10 years left before its maturity time.

1) Suppose its interest rate (YTM) is 10% annually now, what is the current bond price?

2) If the bond is traded at $1100 one year later ( 9years left before maturity), what is its annual YTM?

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