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A $1,000 par value bond was issued 35 years ago at a 11.00 percent coupon rate, paid semiannually. It currently has 30 years remaining to
A $1,000 par value bond was issued 35 years ago at a 11.00 percent coupon rate, paid semiannually. It currently has 30 years remaining to maturity. Interest rates on similar debt obligations are now 8 percent. (Use a Financial calculator to arrive at the answers.) a. What is the current price of the bond? (Round the final answer to 2 decimal places.) Price of the bond $ 1138.96 b. Assume Igor Sharp bought the bond three years ago, when it had a price of $1,015. What is his dollar profit based on the bond's current price? (Round the final answer to 2 decimal places.) Dollar profit $ c. Further assume Igor Sharp paid 20 percent of the purchase price in cash and borrowed the rest (known as buying on margin). Igor used the interest payments from the bond to cover the interest costs on the loan. How much of the purchase price of $1,015 did Igor Sharp pay in cash? Purchase price $ d. What is Igor's percentage return on his cash investment? Divide the answer to part b by the answer to part c. (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Percentage return
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