1. Six years ago, the Singleton Company sold a 20-year bond issue with a 14 percent annual coupon rate and a 9 percent call premium. Today, Singleton called the bonds. The bonds originally were sold at their face value of $1,000. Compute the realized rate of return for investors who purchased the bonds when they were issued and who surrender them today in exchange for the call price. Realized return = 15.03%

2.

$4million issued in 2012

PAR=1000

30 years bond sold at 980

coupon rate 7%

selling today for 1082

Find realized return