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1. You bought a $1000 10% annual bond at a yield of 7% when it had exactly 10 years to maturity left (you did not

1. You bought a $1000 10% annual bond at a yield of 7% when it had exactly 10 years to maturity left (you did not buy it at issue).

(1) Please, find the price at which you bought the bond. Express your answer in dollars and cents (not as a percentage of the face value) but omit the $ sign.

(2) Immediately after you purchased the bond, the yield had increased from 7% to 13% and remained at that level indefinitely. Its now exactly 5 years since you invested in the bond.

i. Please, find the total interest on your bond investment over the 5 years period. Express your answer in dollars and cents but omit the $ sign.

ii. Please find the value of interest-on-interest at the end of year five. Express your answer in dollars and cents but omit the $ sign.

iii. Please find the bonds price at the end of year five. Express your answer in dollars and cents but omit the $ sign.

iv. Please find the capital gain or loss on your bond investment as of the end of the year five. Express your answer in dollars and cents but omit the $ sign. Make sure to enter the negative sign if you have experienced a capital loss.

v. Please find the total income on your bond investment as of the end of year five. Express your answer in dollars and cents but omit the $ sign.

vi. Please find the realized return on your bond investment at the end of year five. Express your answer as a percentage with 3 digits after the decimal point but omit the $ sign.

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