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4. Calculation. Equations, process of calculation and the results are necessary. (10' for each) 1) Calculation about returns You bought a 10-year bond with a

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4. Calculation. Equations, process of calculation and the results are necessary. (10' for each) 1) Calculation about returns You bought a 10-year bond with a par value of 100 on January 2nd, 2012 at 112 and sold it at| 145 at January 2nd, 2015. The bond was issued in 2008 and had an interest rate of 8%. The interest was paid on January 1st each year. a) Calculate the holding period return of this investment. b) Calculate the effective annual rate of this investment

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