The Pennington Corporation issued a new series of bonds on January $1,1987.$ The bonds were sold at par $($$$1,000),$ had a $12\%$ coupon, and matured in $30$ vears on December $31,2016.$ Coupon payments are made semiannually $($on June $30$ and December $31).$

What was the YTM on the date the bonds were issued?

What was the price of the bonds on January $1,1992(5$ years later$),$ assuming that interest rates had fallen to $10\%?$

$$Find the current yield, capital gains yield, and total yield on January $1,1992,$ given the price as determined in part b$.$

$$On July $1,2010(6\mathrm{.}5$ years before maturity$),$ Pennington's bonds sold for $$916\mathrm{.}42.$ What are the YTM$,$ the current yield, and the capital gains yield for that date?

$$Now assume that you plan to purchase an outstanding Pennington bond on March $1,2010,$ when the going rate of interest given its risk is $15\mathrm{.}5\%.$ How large a check must you write to complete the transaction? $($Hint: Don't forget the accrued interest.$)$