1) OK, after 2 years, this bond has 16 periods to go with a semi-annual coupon of $30. Using this online financial bond calculator, this bond will sell for $1,135.78. You can also get a mini-tutorial by clicking on the concept in the left sidebar:

http://www.zenwealth.com/BusinessFinance...

2) the return over the 2 year holding period is $135.78 plus 2 times $60 for a total return of $255.78.

B) The IRR is 12.4%, using this online calculator and entering an investment of -$1,000, a $60 return after year 1 and $1,196 at the end of year 2.

http://www.tvmcalcs.com/calculators/exce...

http://www.datadynamica.com/irr.asp

1. You bought a 10-year bond issued by GE with a par value of $1,000, and a coupon annual interest rate of 6%, and the interest is paid semi-annually. Two years later you decide to sell the bond, but interest rates on bonds of similar maturity and risk have fallen to 4%. Calculate the current market price of your bond ?

2. A) What was the rate of return on this investment over the two-year “holding period” ?

B) What is the compound annual return from your investment ?