a) Arnold just bought seven (7) Canada Life Insurance Companybonds that will mature in 7 years.The coupon rate is 6% and is paid semi-annually.Arnold bought them at 82 per 100 par value.What is his yield to maturity with annual compounding?

b) If you decided to purchase bonds based on the fact that they would mature at the exact same time as your mortgage is coming due, what strategy did you employ?