18. Today (T=0), an investor purchased a five year bond with an 8.0% coupon at par. Assume interest rates do not change from now until the bond's maturity. If the investor holds the bond from now until maturity and can reinvest coupons at the YTM, the investor's rate of return will be closest to: A. 4.0% B. 6.7% C. 7.0 % D. 8.0% E. 9.7% 19. Today (T-0), an investor purchased a seven year bond with an 8.0% coupon for $105,500. The bond has a face value of $100,000. The bond's yield to maturity is closest to: A.S.S % B. 6.7 % C. 7.0% D. 8.0% E. 11.0% 20. Today (T-0), an investor purchased a nine year bond with an 8.0% coupon for $9,680. The bond has a face value of $10,000. In six months (T=0.5) interest rates have increased by 1.0% and the investor decides to sell the bond immediately after receiving the first coupon payment. What is the investor's total gain (loss) on the bond? HINT: Total Gain (Loss) Price Change in Bond + Coupon A. (S583) B. (S183) C. (S150) D. $190 E. $990 21. Currently you have $120.00 in cash and 1000 shares of Stock Yin your brokerage account. You plan to sell your 1000 shares of Stock Y and use the proceeds to purchase as many shares of Stock X as possible. Assume you cannot borrow or buy partial shares of stock; you will also buy or sell at the best price offered. Como 1495515 Cogany 11 120125 127 128 30 Based on the quotes provided, the cash balance in your brokerage account after you purchase the shares of Stock X is closest to: A. S(60.89) B $59.11 C. $87.95 D $89.24 E. S106.10