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10. If your firm wants to finance a project that costs $5,500 by selling a bond (remember, A BOND IS JUST A LOAN) that

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10. If your firm wants to finance a project that costs $5,500 by selling a bond (remember, A BOND IS JUST A LOAN) that makes annual coupon payments. a. what price would you receive for a 10 year, 10% coupon rate bond with a face value of $100 if the yield to maturity is 5%? b. How many bonds would you have to sell to finance the initial $5,500 investment? C. One year after you sell the bond, after you make the first coupon payment, the bond trades for $105, what is the holding period return for someone who bought your bond? d. What could be a reason for the difference in price between questions a. and c.? (NO CALCULATION NEEDED)

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