5. You buy the bond for the price you computed, hold it for one year, receive the coupon cash flow, and sell it for 94.8670. The realized yield on your investment is: .. %

6. Compute the yield to maturity on the bond at the time of the sale, remembering that the bond now has only 4 years left to maturity. Use $1000 as face. Solve by trial and error, on a financial calculator, or in Excel.

$70 x PVAF (4, x%) + $1000/(1+)^4 = $ 948.67 to get ytm: x = %

Use the following information to answer questions 1-6. Please enter percentages as whole numbers, e.g. enter 7.18% as 7.18 not 0.0718. A 5-year 7% annual coupon bond yields 6%. Assume the face value of $10,000. Draw the picture of the bond assuming the face value of $10,000