What is the rate of return

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1.A 9 year maturity bond has a face value of $1000, a yield to maturity of 10% and coupon rate of 7%. Assume coupon payments are made annually. If the next period the yield to maturity falls to 8% what is the rate of return?

2. If I have 30-year government bonds with a face value of $20,000 which makes semiannual coupon payments and has a coupon rate of 1.38%. What is the yield to maturity if the bonds are selling for $25,000 and $31,000, respectively?

Reference no: EM132632728

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