Problem 2 Four years ago, S. Goodman Corp. issued a bond with a 14% coupon rate, semi-annual coupon payments, $1,000 face value, and 14-years until maturity. a) You bought this bond three years ago (right after the bond made its coupon payment) when the yield-to- maturity was 11%. How much did you pay for the bond? b) Suppose today's yield-to-maturity of the bond is 16% and the next coupon payment is exactly in 6 months from today. If you sell the bond today, after you have owned it for three years, what would be your capital gain/loss yield? Remember, the capital gain/loss yield is the return resulting from price changes of your investment. c) Suppose two years from now (right after the bond made its coupon payment) the bond has a value of $1,000. What would be the yield-to-maturity of the bond (APR, semi-annually compounded)? Use Excel or a financial calculator to solve this