Question: Can you please explain what formulas you use and how you calculate the 2 questions 1. Exactly one year ago you bought a 7% coupon

Can you please explain what formulas you use

and how you calculate the 2 questions Can you please explain what formulas you use and how you

1. Exactly one year ago you bought a 7% coupon bond with a face value of 100 and 4 years to maturity for a price of 97.34. The bond pays interest annually. In the meantime the yield to maturity for the bond has changed to 6%. If you sold the bond today what would have been your rate of return over the past year? 1. One year ago you bought a 5% coupon bond with a face value of 100 and 5 years to maturity for E101.55. The bond pays interest annually. In the meantime the yield to maturity for the bond has risen to 7%. If you sold the bond today what would be your rate of return over the year

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