Cinqua Terra Incorporated issued 10-year bonds three years ago with a coupon rate of 8.75% APR. The bonds pay semi-annual coupons, have a face value of $1,000 each and were issued at par value. Cinqua Terra bonds currently trade at $1,107.00.

What is the 6-month return for holding the bonds until maturity (r^' or y^')?

a)

Cinqua Terra Incorporated issued 10-year bonds three years ago with a coupon rate of 6.25% APR. The bonds pay semi-annual coupons, have a face value of $1,000 each and were issued at par value. Cinqua Terra bonds currently trade at $1,110.00.

b)

Cinqua Terra Incorporated issued 10-year bonds three years ago with a coupon rate of 8.75% APR. The bonds pay semi-annual coupons, have a face value of $1,000 each and were issued at par value. Cinqua Terra bonds currently trade at $1,107.00.

c)