A retired couple wants to invest in bonds which have $10,000 par values and mature in 20 years. Coupons are paid semi-annually on a 1. stated annual coupon rate of 6.5%. Their investment advisor has pointed out a bond with a yield to maturity of 7.75%. They have $150,000 to invest. How much money will it cost the couple to purchase five bonds (rounded to the nearest dollar)? |The couple ended up buying five bonds. Two years after initial purchase, they find themselves needing some cash for home repairs. At the 2. time they go to sell, yields to maturity in the market for bonds similar to those they bought are now 7%. How much cash would they generate if they sold two bonds (rounded to the nearest dollar)? 3. Martha is a savwy investor. She wonders if their investment advisor gave them good advice. She sits down after those first two years to calculate holding period returns of investing in and selling those two bonds and determines their return to be? 4. Three years after initial purchase, Martha wonders what the yield to maturity on the bonds is now. They are selling for $12,000 each