Questions 11 13 utilize related information. Move forward in time from the story told in questions 11 and 12. Recall that the investor bought the Skokie Skateboard Corporation bond for $952.25 six years after it was originally issued. Now, thirty-five years after it was issued, the holder decides to sell the bond for its new market price of $921.26. (We can assume that interest rates have risen slightly and steadily over the years since the original issue date, such that the company has had no motivation to call its bonds.) QUESTION: PLEASE REFER TO THE ATTACHMENT TO QUESTION 13 IN ANSWERING. Which of the five equations shown would you use in computing the bond holders (29-year) HOLDING PERIOD YIELD?

88 88 EQUATION 1: $952.25 = $31.00 1+1 r + $1,062.000 ... 100 (+-)" 100 EQUATION 2: $952.25 = $62.00 + $1,000.00 r 100 100 1+1 EQUATION 3: $1,000.00 = $31.00 + $952.25 r 88 (1-6+2) 88 EQUATION 4: $952.25 = $31.00 + $1,000.00 r 1+1 1+r EQUATION 5: $1,952.25 = $31.00 + $1,000.00 67** 7