1. The investment return of bond is equal to (income+price change)/buying price. In this problem, income is 50*2, price change=120-980, I don't know why the price drop so much. It' s a little weird. Buying price is 980.

2. They are not the same concept. Yield to maturity is equal to the interest making the summation of PV of all the future cash flow equal to the present bond price which is the same as the IRR of this investment. You must know how to calculate. YTM is on your text book. The calculation needs a financial calculator or Excel.

3.Since the bond's price drop so much, we have enough confidence to say that the interest now is much higher than that two years ago.

Hope help~

数字有错吧，一下子从980跳到120.。。。

应该是1200吧

这道题木有人会吗？？？

hhhhh