Rocket Exterprices has a 20-year bond issue outstanding that pays a 4% coupon. The bond is currently priced at $1,205.60 and has par value of $1,000. The bond also pays coupons semiannually. You just purchase ten of them as an investment.

1.) What is the yields to maturity of the bond you hold?

2.) Five years fo by interest rates in the economy goes up by 3% and Rocket Enterprises' bonds YTM also rises by 3%. Unfortunately, you desperately need cash and will have to sell your bonds. Your friend offers $885.00 for each bond. Would you sell to your friend? Why?