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a. Four years ago you paid $770 to acquire a bond with following characteristics: Coupon = 4% (semi-annual payments). Maturity = 20 years. Face value

a. Four years ago you paid $770 to acquire a bond with following characteristics: Coupon = 4% (semi-annual payments). Maturity = 20 years. Face value = $1000. Yesterday you received your 8th coupon payment. Today you sold the bond to Kathy for $900. What is Kathys YTM?

b. Refer to the previous problem. What is your HPY?

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