Question: Investor bought 20-year bond with a coupon rate of 10% at face value of Rs.1000. After three years YTM is 9% in market. Investor decided to sell bond after holding it for three years....

Question:

Investor bought 20-year bond with a coupon rate of 10% at face value of Rs.1000. After three years YTM is 9% in market. Investor decided to sell bond after holding it for three years.

Required:

• What should be YTM in market when investor bought bond?


• How much interest investor received during his holding period?


• At what price investor sold bond?