Question: PLEASE SHOW WORK, THANKS! (you can use excel or calculator, but please steps/work) All bonds are semi-annual. All yield measures are stated as annual percentage

PLEASE SHOW WORK, THANKS! (you can use excel or calculator, but please steps/work)

All bonds are semi-annual. All yield measures are stated as annual percentage rates.

1. Suppose you buy a 10 year 9% bond that has a YTM of 11%. What is the price of the bond?

2. Suppose you buy a 30 year 7% bond that has a YTM of 7.5%. What is the price of the bond?

3. What is the holding period yield on a 30 year 7% bond that we buy for $1020. We sell the bond in 4 years for $1040.

4. Suppose you bought a 10 year 8% bond for $975. If you sold the bond for $940 after holding it for 2 years, what was your holding period yield?

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