Betty and Bob buy an 18-month special bond with coupons of $8, $11, and $5 in that order and a maturity value of $100. The bond is originally priced to yield 12% per annum compounded semiannually. Your final answers should be correct to 2 places after the decimal point.

Algebraically find the original price of the bond. The price is _________________.

Find the Macaulay Duration. State your answer in years.

Your final answer should be correct to 2 places after the decimal point D_M = ________________years.

Find the price of the bond after 7.5 months. The price is __________________.

If the reinvestment rate equals the yield to maturity then algebraically find the terminal wealth of the bond after 7.5 months.

The terminal wealth is __________________