You own 12 20-year General Electric Capital Services corporate bonds with face values of $1,000. Their coupon rate is 7.5%. Their current yield is 5.2%.

1. Calculate

(a) What is the current market value of one of these bonds? (b)

Of the total investment?

(c) If you do not have an immediate need for the cash, what would be your best course of action, sell and reinvest in some other security or hold?

2. Compute by using spreadsheet software to make and present these calculations.