Question 1

A government bond is currently selling for $1,210 and pays $80 per year in interest for 15 years when it matures. If the redemption value of this bond is $1,000, what is its yield to maturity if purchased today for $1,210?

Please show your work. Write your answers with two decimal points

Question 2

The Unite States Treasury bills are available for purchase this week at the following prices (based upon $100 par value) and with the indicated maturity: $97.75, 182 days.

(1) Calculate the bank discount rate (DR) on this bill if it is held to maturity.

(2) What is the equivalent yield to maturity (sometimes called the bond-equivalent or coupon equivalent yield) on this Treasury bill?

Please show your work. Write your answers with two decimal points