21. Lamar Baily purchased a 7% coupon corporate bond that would mature in 10 years and paid interest semiannually. He paid $2,800 at par and six months later, immediately following an interest payment, he sold the bond. At the time of sale, the market interest rate on bonds of this type was 6%.
    1. What was Lamars selling price?

1. 2. What was Lamars rate of return for the six months?

1. 3. What is the return on an annual basis?