Question: 1 . A 2 5 - year zero - coupon bond with face value of $ 1 , 0 0 0 is sold for $

1. A 25-year zero-coupon bond with face value of $1,000 is sold for $850 now, what is the YTM for this bond?
2. A 15-year 6.5% coupon (semiannual) bond sells for $965, what is the bond holders YTM?
3. On the issue date, you bought a 30-year maturity, 5.85% semi-annual coupon bond. The bond then sold at YTM of 6.25%. Now, 5 years later, the similar bond sells at YTM of 5.25%. If you hold the bond now, what is your realized rate of return for the 5-year holding period?

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