Question: please show answer using excel format and formula used. thank you so much! 3. A government bond matures in 4 years, makes annual coupon payments
3. A government bond matures in 4 years, makes annual coupon payments of 5.9% and offers a yield of 3.9% annually compounded. Assume face value is $1,000. a) Suppose that one year later the bond still yields 3.9%. What return has the bondholder earned over the 12-month period? b) Now suppose that the bond yields 2.9% at the end of the year. What return did the bondholder earn in this case
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