Problem One -Internal Rates of Return (25 points) A friend of yours purchased $80,000 (face value) of Duotron Corporation bonds for $87,357 on February 28, 2017. The bonds have an 8% annual coupon rate and pay interest semiannually on August 31 and February 28. t is now midnight February 28, 2019, and your friend has received four coupon payments. The bonds mature on February 28, 2032. Required: Answer the following questions concerning this investment 1. What is the amount of the coupon payments that your friend received on August 31, 2017, February 28, 2018, August 31, 2018 and February 28, 2019? 2. What was the Yield-to-Maturity (YTM) your friend expected when she purchased the bonds in 2017? The YTM is just the expected Internal Rate of Retum (IRR) on the bond investment 3. If the market interest rate for similar bonds is currently 10%, compounded semiannually, at what price would these bonds sell today? If your friend were to sell the bonds today at the price you determined in part 3, what annual rate of return would she have eamed over her two-year holding period? (Regardless of whether she sells the bonds or not, this is called the holding-period retum. It is an unrealized return if she doesn't sell them and a realized return if she sells them.) 4