A 2-year maturity bond with a face value of $1,000 makes annual coupon payments of $60 and it is selling at a?
a) What is the price of the bond?
b) What is the current yield of the bond?
c) What will be the rate of return on the bond if its yield to maturity at the end of the year is: (i) 6%, (ii) 8%, (iii) 10% ???