Samia Mirza is considering purchasing bonds of Longlive Enterprises, which have ten years to maturity, and pay 8% coupon rate annually.

1. What is the yield to maturity, if the bond is currently selling for $935.82?
2. If YTM remains constant, then what will be the price of the bond when nine years left to maturity? What will be the current (interest) yield, capital gain yield, and the total yield, if Samia sells the bond when nine years left to maturity?
3. If Samia purchases the bond today for $935.82, and sell it after five years for $1078.69, then what will be her annual holding period yield?
4. Suppose in part 3) above the coupon payments can be reinvested earning 8% interest per year. What will be her annual realized rate of return?