a)Gem Enterprises issued a new series of bonds on July 1,1994.The bonds were sold at par ($1,000), had a 9% coupon rate, and mature in 30 years. Coupon payments are made semi-annually on December 31 and June 30. What is the price of the bonds five years later, on July 1, 1999 assuming that the level of interest rate(current rate) has risen to 14% (nominal).

b)Suppose that you buy a 5% semi-annual coupon bond for $1,081.76.The bond has 10 years to maturity.Two years after purchasing the bond you sell it for $1,050. What is the effective annual holding period yield?