a)Katie paid $9,400 for a corporate bond with a par value of $10,000 and a coupon rate of 6.5%. She holds the bond for 2 full years and then sells the bond for $9,700. Since Katie is in the 25% marginal tax bracket, how much tax will she have paid during the time she held the bond? (Ignore Long-term capital gains)

b)Tim has an opportunity to buy a $1,000 par value bond with a coupon rate of 7% and a maturity of 5 years. If Tim requires a 9% return on his investments, what is the most he would pay for this bond?

C)Mark has a portfolio of bonds worth $30,000. They are all 6% bonds with a maturity in 15 years. New bonds are currently selling at a rate of 8%. How much money can Mark expect to receive on the sale of his bonds?

d)You previously purchased a $1,000 bond, with a coupon rate of 5%. If comparable bonds are currently selling at a coupon rate of 4%, which is the current market value of your bond?

e)Last year you purchased a 15 year bond at 98 with a coupon rate of 5%. The current market rate is 3%. If you sold your bond today, what would be your total return on your investment (ignore taxes)?

f)Julio purchased a $1,000 corporate bond with a 4% coupon rate. The bond is currently quoted at 106.

1. What is the current price of the bond?

2. Given the current bond price, what is the current yield of the bond?

g)Bernie purchased 20 bonds with par values of $1,000 each. The bonds carry a coupon rate of 9% payable semiannually. How much will Bernie receive for his first interest payment?

h)You previously purchased a $1,000 bond, with a coupon rate of 5%. If comparable bonds are currently selling at a coupon rate of 4%, which is the current market value of your bond?