A $5000, 7% coupon, 20 year bond issued on January 21, 2006, was purchased on January 25, 2007, to yield 6.5% to maturity, and then sold on January 13, 2008, to yield the purchaser 5.2% to maturity.

a.What price was the bond sold for on January 25, 2007?

b.What price was the bond sold for on January 13, 2008?

c.What was the investors capital gain or loss?

d.If the bond was sold 5 and a half years before maturity at a price of $5122, what is the bonds yield to maturity?