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Last year, you purchased a bond with a par value of $1,000 and with an 8.5% annual coupon. The bond hada 20-yearmaturity. At the time

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Last year, you purchased a bond with a par value of $1,000 and with an 8.5% annual coupon. The bond hada 20-yearmaturity. At the time of the purchase, it hadan expected YTM of 7%. After receiving the coupon at the end of the first year, you sold the bond today for $1,120. a. 4. How much did you pay for the bond last year? $ 949 b. $ 956 c. $1,042 d. $1,053 e. $1,159 5. Whatis your holding period retum in one year? a. 2.09% b. 3.98% c. 5.89% d. 10.6.496 12.75% e

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