A seven-year government bond makes annual coupon payments of 5% and offers an interest rate (ie. YTM) of 3% annually compounded. Suppose that one year later the bond still yields 3%.    a) What is the bond price in year 0?  b) What is the bond price in year 1?  c) What return has the bondholder earned over the first year?

A 6-year bond pays interest of $80 annually and sells for $975. What is its coupon rate, current yield, and yield to maturity?

A bond has a time to maturity of 10 years, and a coupon rate of 7% with coupon interest paid semiannually. If the current market price is $815, what will be the approximate price of this bond at the end of the second year?

A bond pays $10,000 per year for the next 10 years. The bond costs $90,000 now. Inflation is expected to be 6 percent over the next 10 years. Answer parts (a) and (b). a. What is the current dollar internal rate of return? Use linear interpolation with x, = 1.95% and x, = 2.00% to find your answer. The current dollar internal rate of return is percent. (Type an integer or decimal rounded to two decimal places as needed.) b. What is the real internal rate of return? The real internal rate of return is percent. (Type an integer or decimal rounded to two decimal places as needed.)