For the following bond, determine the following:

a.) the nominal yield

b.) the holding-period yield for the 13th half-year period, assuming the rate of interest remains unchanged

c.) the holding-period yield for the 6th year, assuming the investor can reinvest the coupons at 13% per annum compounded semiannually

PLEASE SHOW ALL WORK BY HAND, WITHOUT USING A FINANCE CALCULATOR OR EXCEL. THANK YOU.

Type of Bond Issue Date Maturity Date Face Value Redemption Value Coupon Rate Yield Rate Government bond May 16, 2006 May 16, 2016 $100 $108 5% payable semiannually 8% convertible semiannually