a. Suppose an investor can purchase a 5-year 8% coupon bond with a par value of $100 that pays interest semi-annually. The yield to maturity for this bond is 9% on a bond-equivalent basis. What is the total future dollars and the total dollar return that should be generated from this bond if it is to yield 9%?

b. What is the coupon interest, capital gain/loss and reinvestment income associated with this bond? Assume that the reinvestment rate is equal to the yield to maturity.

{Please don't use Excel formulas, write solutions please.}