You bought a 15-year, 1000 face value bond exactly one year ago today with an annual coupon of 11 percent and a YTM of 12,4 percent at the time.

a. What price did you pay for the bond last year?

b. What was the current yield and the expected capital gains yield on the bond when you purchased it last year?

c. You need money to purchase a computer and decide to sell your bond today. The YTM on the bond today is 17,2 percent. If you sell the bond, what will your realized capital gains yield be over the past year?