second and third pictures are the supplemental handout for Q10. thank you, this is really hard problem

In 2021, you buy a 10% coupon $1,000-face-value bond at a 12% interest rate. Coupon is paid annually. In 2022, the interest rate on newly issued comparable bonds in the market falls from 12% to 6%. Fill out the following table for the one-year return (from 2021 to 2022) on your coupon bond assuming different maturities. Hint: You may want to refer to a supplemental handout, HW#2-Q10.pdf, to understand the calculation. Years to Bond Maturity Purchase when Bond Price (in is Purchased 2021) (in 2021) Current Yield Bond Price (in 2021,%) Next Year C (in 2022) P Rate of Capital Gain (%) Pt+1-P Pt Rate of Return (%) = Current Yield + Rate of Capital Gain 1 2 3 4 5 . In 2021, you buy a 10% coupon, $1,000 face value bond at an interest rate of 12% Coupon is paid annually. In 2022, the interest rate on newly issued comparable bonds in the market falls from 12% to 6% Your task compute the one year return (from 2021 to 2022) on your coupon bond assuming different maturities Years to Bond Purchase Price (in 2021) Current Yield Bond Price Next Year Rate of Capital Gain Rate of Return (%) = Maturity (in 2021, %) (in 2022) (*) Current Yield + Rate when Bond YTM > coupon cate, which indicates c of Capital Gain Is Purchased Poa coupon rate, which indicates Is Purchased Prax face value. You should in 2021) calculate you using the present value concept $100+ $1,000 =$982.14 1 (1.12) Discount the cash flow that is due in 2022 using the 2021 interest rate, $100 $1,100 2 P2021 + (1.12) (1.12) P1 = $100 $982.14 This bond matures and pays the face value in 2022 Prozz$1,000 $1,000 - $982.14 $982.14 - 12.00% =10.18% = 1.82% 10.35% + 7.40% $100 $966.20 $1,100 = 17.75% $966.20 10.35% In 2022, this bond now remains one year $1,037.74-$966,20 to maturity $966.20 Proa (1.06) - $1,037.74 = 7.40% Notice that you should use the new 2022 interest rate to discount the cash flow! This bond has two years to maturity in 2022 3 P2021 $100 $951.96 $100 $100 + (1.12) (1.12) $1,100 (1.12) $951.96 10.50% 5