5)-Three years ago you purchased a 9% coupon bond that pays semiannual coupon payments for $960. What would be your bond equivalent yield if you sold the bond for current market price of $1,051?

Your bond equivalentyield, if you sold the bond for current marketprice, is --%

6)-An investor is considering the purchase ofa(n) 6.875%, 15-year corporate bondthat's being priced to yield 8.875%. She thinks that in ayear, this bond will be priced in the market to yield 7.875%. Using annualcompounding, find the price of the bond today and in 1 year.Next, find the holding period return on thisinvestment, assuming that theinvestor's expectations are borne out.

The price of the bond today is

7)-Compute the current yield ofa(n) 9.5%, 20-year bond that is currently priced in the market at $1,200. Use annual compounding to find the promised yield on this bond. Repeat the promised yieldcalculation, but this time use semiannual compounding to findyield-to-maturity.