Four years ago, you purchased seven $1,000 face value bonds of Omega Mines Ltd. The bonds have a coupon rate of 5.65%, paid semi-annually. When you bought the bonds, their market yield rate was 6.20% with twelve years left to maturity.

Requirement 1

How much did you originally pay in total the Omega bonds? $Answer

Requirement 2

If the current market rate on similar bonds is 7.50%, what is the current market price per bond? $Answer

Requirement 3

If you sell all of your Omega Mines Ltd. bonds today, what is your total gain or loss and the overall (i.e. NOT annualized) rate of return on the bonds?

Total gain/loss: $

Overall rate of return: %