Question: 2. A 30-year bond with the face value $1,000 and an annual 3% coupon rate payable semiannually was issued by US Treasury and sold at

2. A 30-year bond with the face value $1,000 and an

2. A 30-year bond with the face value $1,000 and an annual 3% coupon rate payable semiannually was issued by US Treasury and sold at the price $1000 on the first trading day of 2015. (a) Suppose that you will purchase the first bond on the first trading day of 2025 at the price $500 and hold it to the maturity. What will be the yield to maturity? (b) Ten years later on the first trading day of 2025, a 20-year bond with the face value $1000 and an annual 6% coupon rate payable semiannually is issued by the Treasury and sold at the price $1200. What will be the market price of the first bond

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