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Problem 1 A simple 1-year coupon bond is issued. The bond is purchased for price p, sold/redeemed for Prez, and earns a coupon payment c.

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Problem 1 A simple 1-year coupon bond is issued. The bond is purchased for price p, sold/redeemed for Prez, and earns a coupon payment c. For each of the following cases: a) calculate the Yield of that bond. b) Calculate the Coupon Rate. c) Calculate the Rate of Capital Return i. Pear = $1050, p = $1200, C = 150 ii. Pau = $10000, p = $9000, C = 500 iii. Pra= $250, p = $200, c = 50

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