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1a. You purchased a A rated $5000 annual coupon bond with an 6.1% coupon rate and a twelve year maturity at parr value. The currentrate

1a. You purchased a A rated $5000 annual coupon bond with an 6.1% coupon rate and a twelve year maturity at parr value. The currentrate on 12-year US treasuries is three %. Two years later, you look in the newspaper, and find that the yield on comparable debt is 5.089%, how much is the bond currently worth?

1b. Suppose that you purchased a Ba rated $1000.00 annual coupon bond with an 11.2% coupon rate and a ten -year maturity at parr value. The current rate on ten-year US treasuries is three%. Two years later, you sell the bond, and for a yield of 6.279%, what was your capital gain (+) or capital loss (-) in dollars and cents? (make your answer positive for a gain, negative for a loss)

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