On July 12th, 2016, the Mexican government issued a 20-year, 6% semi- annual, fixed rate coupon bond, at a $1,000 par value.

One year after the issue (July 12th, 2017), New York-based hedge fund Viewcrest Street Partners (VSP) purchased 12,000 units of these bonds at a price of 75% of par. HP financed 60% of this purchase with a 1-year renewable bank loan at a 3.5% interest. The remaining 40% of the purchase was financed with HP equity.

Two years after the issue (July 12th, 2018), VSP sold all its Mexican bonds at 80% of par, after having received the coupon payments for Year 2 (but not for Year 1).

Please answer the following questions (Ignore taxes; show the details of your calculations):

What was the yield to maturity of the bonds on the date that VSP purchased them?

What was VSPs net profit (or loss) per bond in dollars on this trade after selling the bonds in 2019?

What was VSPs ROA on this deal?

What was VSPs ROE on this deal?