Michael Nguyen buys a new corporate bond for $1,000. The issuing company promises to pay the holder $45 every 6 months interest on $1,000 corresponding to the face value (at par) of the security and repay this $1000 after 10 years. Two years later, Michael sells bond to Maria Garcia for $900. Show your calculations in your work document.

a) What is Michael's return on investment?

b) If Maria retains the bond for the remaining 8 years before her maturity, what is the return to maturity of his investment?

c) What was the current yield when Maria bought the bond?