Question: Please give me specific steps, thanks! 2. (10% ) Suppose you purchased a 25 -year treasury bond (face value of $1,000 ) with a 6%

Please give me specific steps, thanks!

2. (10% ) Suppose you purchased a 25 -year treasury bond (face value of $1,000 ) with a 6% annual coupon ten years ago at par. Today the bond's yield to maturity has risen to 8% (EAR). a) (5\%) If you hold this bond to maturity (i.e., 15 more payments to receive), what is the internal rate of return you will earn on your investment? (Write down the formula that you will use. To get the IRR, use Excel's 'rate' function in chapter 6 to calculate IRR.) b) (5%) If you sell this bond now, what is the internal rate of return you will earn on your investment? (Write down the formula that you will use. To get the IRR, use Excel's 'rate' function in chapter 6 to calculate IRR.)

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