Refer to the attached excerpts from theWall Street Journal, to answer the following questions:(the excerpts show the closing prices as of Thursday October 8, 2009 and Tuesday December 8, 2009).

You purchased a t-bond on Thursday October 8, 2009 which matures on August 15, 2023. You sold the same t-bond on Tuesday December 8, 2009.

a.Determine the purchase price of the t-bond (how much you paid for it).

b.Determine the selling price of the t-bond (how much you received for it).

c.Determine the holding period rate of return (HPR) on this investment.

d.Determine the annual percentage return on this investment (APR).

e.Determine the effective rate of return on this investment (EAR).

Thursday, October 08, 2009

Maturity Coupon Bid Asked Chg Askedyield

2023 Aug15. 6.250 125:21 125:26 -35 3.8305

Tuesday, December 08, 2009

Maturity Coupon Bid Asked Chg Askedyield

2023 Aug 15. 6.250 123:30 124:02 +16 3.9557