As a financial analyst at Elmwood Co, you're evaluating a $1,500, 10(1+K)% semiannual bond from TechFront, a technology company. Purchased for $1,600, the bond will be held for 4 years (until the 8th payment). Determine the selling price needed to achieve a 6% semiannual yield for the firm's investment portfolio.

Inaddition,thefirmalsopurchaseda$1,200,8%quarterlybondfor$1,250. This bond was sold for $1,100(1+K) after the receipt of the 16th quarterly payment. Determine

i) The quarterly yield.

ii) The effective annual return on this investment for Elmwood Investments (Note that Part B is independent of Part A).