Four years ago, S$.$ Goodman Corp. issued a bond with a $14\%$ coupon rate, semi$-$annual coupon payments, $$1,000$

face value, and $14-$years until maturity.

a$)$ You bought this bond three years ago $($right after the bond made its coupon payment$)$ when the yield$-$tomaturity was $11\%.$ How much did you pay for the bond?

b$)$ Suppose today$$s yield$-$to$-$maturity of the bond is $16\%$ and the next coupon payment is exactly in $6$ months from

today. If you sell the bond today, after you have owned it for three years, what would be your capital gain$/$loss

yield? Remember, the capital gain$/$loss yield is the return resulting from price changes of your investment.

c$)$ Suppose two years from now $($right after the bond made its coupon payment$)$ the bond has a value of $$1,000.$

What would be the yield$-$to$-$maturity of the bond $($APR$,$ semi$-$annually compounded$)?$ Use Excel or a financial

calculator to solve this question.