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/mail/u/0/#starred/FMfcgxwGDWsqWqjNQXBXCDWLqMpWwbjs?projector=1&messagePartid=0.1 Problem 6 (8 points): You purchase 20-year $1,000.00 bond with 5.0% APR semi-annual coupons for $987.15 After receiving the eighth coupon, you sell the

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/mail/u/0/#starred/FMfcgxwGDWsqWqjNQXBXCDWLqMpWwbjs?projector=1&messagePartid=0.1 Problem 6 (8 points): You purchase 20-year $1,000.00 bond with 5.0% APR semi-annual coupons for $987.15 After receiving the eighth coupon, you sell the remainder of the bond for $1.045.19. What annual return have you received on the bond? Answer: 5.98% (xx.xx%) Suppose the coupons can be re-invested and earn 4.0% APR semi-annually. What annual return have you received on the bond? Answer: 6.29% (xx.xx%) /mail/u/0/#starred/FMfcgxwGDWsqWqjNQXBXCDWLqMpWwbjs?projector=1&messagePartid=0.1 Problem 6 (8 points): You purchase 20-year $1,000.00 bond with 5.0% APR semi-annual coupons for $987.15 After receiving the eighth coupon, you sell the remainder of the bond for $1.045.19. What annual return have you received on the bond? Answer: 5.98% (xx.xx%) Suppose the coupons can be re-invested and earn 4.0% APR semi-annually. What annual return have you received on the bond? Answer: 6.29% (xx.xx%)

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