The yield to maturity on a 30 year 3.75% annual coupon bond is 6.3% per year.

(i). Work out the price of the bond assuming that its face value is $100.

(ii). Work out W30, the value of your investment at t=30assuming that the yield to maturity is an accurate measure of return, and therefore your investment grows at the yield to maturity of 6.3% per year.

(iii). Work out the profit you made over the 30 years that you held the bond.

(iv). Work out the dollar amount of capital gains, and the percentage of the profit that they represent.

(v). Work out the dollar amount of coupons, and the percentage of the profit that they represent.

(vi). Work out the dollar amount of reinvestment income, and the percentage of the profit that it represents.