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Kevin just purchased an 8-year semi-annual coupon bond with a par value of $1,000 and a coupon rate of 5%. The nominal yield to maturity

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Kevin just purchased an 8-year semi-annual coupon bond with a par value of $1,000 and a coupon rate of 5%. The nominal yield to maturity is 6% per annum. a) Calculate the market price of the bond when Kevin purchased it. Round your answer to the nearest cent. (3 marks) b) Four years later, immediately after receiving the eighth coupon payment, Kevin sold the bond to Tom. Tom's nominal yield to maturity is 4% per annum. Calculate the price paid by Tom. Round your answer to the nearest cent. (3 marks) c) Calculate the return on capital appreciation earned by Kevin Round your answer to the nearest 0.01%. (2 marks)

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