(Bond valuation) At the beginning of theyear, you bought a $1,000 par value corporate bond with an annual coupon rate of 15 percent and a maturity date of 19 years. When you bought thebond, it had an expected yield to maturity of 12 percent. Today the bond sells for $1,420.

a. What did you pay for thebond?

b. If you sold the bond at the end of theyear, what would be yourone-period return on theinvestment? Assume that you did not receive any interest payment during the holding period.

a. The price you paid for the bond is $

nothing

. (Round to the nearestcent.)

b. If you sold the bondtoday, yourone-period return on the investment is

nothing

%. (Round to two decimalplaces.)