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Six months ago, you purchased a $ 1 0 0 , 0 0 0 , 4 % coupon bond with 4 years to maturity. The

Six months ago, you purchased a $100,000,4% coupon bond with 4 years to
maturity. The bond makes semi-annual coupon payments, and, at the time of
purchase, had a yield-to-maturity of 4.44%.
a) Calculate price (per hundred dollars of face value) you paid for the bond.
b) Today, after noticing that the yield has increase to 5%, you sell the bond. What is
the current price (per hundred dollars of face value)?
c) Calculate your gains or losses, and the holding period yield from the purchase and
subsequent sale of the bond.

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