Victoria Morgan is considering her investment options, An investment dealer is offering her a bond with a $1000 par value which pays $70.00 per year in 2 semi annual payments. It matures in 7 years and the price today is $1068.

To assit Victoria in her decsion, compute the following

round your answers to two decimal places.

a) the coupon rate

b) The current yield

c) The yield to maturity

d) the dealer has indicated that it is possible to reinvest the coupons at 9%. if Victoria selects this option, what will her return on the investment be?