Question: You bought a 20-year, zero coupon bond with a face value of $1,000 and a yield to maturity of 2.9% (Expressed as an EAR, you

You bought a 20-year, zero coupon bond with a face value of $1,000 and a yield to maturity of 2.9% (Expressed as an EAR, you don't need to deal with the simple rate issue.)

What is the price of the bond today?

5 years after your initial purchase, you decide to sell the bond. (15 years are now remaining to maturity.) Interest rates have since risen to 6.3% on 15-year bonds.

What is your personal annual rate of return on holding the bond?

(Reminder - this is a rate question, so be careful.)

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