Problem 1)

Problem 2)

Please, could somebody help me?

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. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) a. Suppose that one year later the bond still yields 3.9%. What return has the bondholder earned over the 12-month period? % Rate of return b. Now suppose that the bond yields 2.9% at the end of the year. What return did the bondholder earn in this case? Rate of return paid annually. Here are the prices of three bonds with 10-year maturities. Assume face value is $100 Assume coupons are Bond Coupon (%) Price () 89.00 3 5 108.00 10 139.00 a. What is the yield to maturity of each bond? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Bond Coupon (%) YTM % 5 % 10 % b. What is the duration of each bond? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Bond Coupon (%) Duration years 5 years 10 years