You purchase a U.S. 8.14%, 30-year bond with a face value of $100 selling at par. 1. What is the yield to maturity on the bond? 2. What is the duration of the bond? 3. If you sold the bond at the end...

You purchase a U.S. 8.14%, 30-year bond with a face value of $100 selling at par.

1. What is the yield to maturity on the bond?

2. What is the duration of the bond?

3. If you sold the bond at the end of 1 year what price would you receive for it if its yield to maturity increased to 10 percent?

4. What cash flow yield would you earn on the bond if sold it at the end of 10 years at a yield to maturity of 10 percent?

5. What realized compound yield (i.e. RCY) would your earn on the bond over 10 years if you were able to reinvest the coupons at 8 percent per year? Assume the bond can be sold at the end of 10 years at a yield to maturity of 8 percent?