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On December 3 1 st , 2 0 1 3 , you decided to buy a 4 0 - year Government of Canada bond. The

On December 31st,2013, you decided to buy a 40-year Government of Canada bond. The bond had a face value of $100,000. The annual coupon rate on the bond was 5.40%. Coupons were paid semi-annually. On December 31st,2013 the yield to maturity on Government of Canada bonds was 4.70% per year. (The term structure of interest rates was flat.)
After holding the bond for 10 years you decided to sell the bond on December 31st,2023. Prior to selling the bond you received the December 31st,2023 coupon payment. On December 31st,2023 the yield to maturity on Government of Canada bonds had decreased to 3.30% per year. (The term structure of interest rates was flat.)
a) How much did you pay for the bond on December 31st,2013?
b) How much did you sell the bond for on December 31st,2023?
c) What was the effective periodic rate of return that you earned on your investment during the 10 years?
d) What was the effective annual rate of return that you earned on your investment during the 10 years?
This must be done on an Excel.

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