You purchased a bond with a $10,000 face value and a 12% coupon rate. It has a 30-year maturity. Immediately before its 3^rd payment, you sell the bond to your friend Jimmy. At the time of the re-sale, the interest rate in the economy is 8%. What is the selling price of the bond? 8k-9k 10k-11k 12k-13k 14k-15k none of the above Solana answered this 13, 593 answers Option (d). Before 3rd payment, number of future coupon payments = 30 - 2 = 28 Annual coupon = $10,000 times 12% = $1, 200 Selling price ($) = Present value (PV) of future coupon payments + PV of redemption amount (face value) = 1, 200 times PVIFA (8%, 28) + 10,000 times PVIF(8%, 28) = 1, 200 times 11.0511 + 10,000 times 0.1159 = 13, 261 + 1, 159 = 14, 420 What is the IRR that you earned on the bond in Q#4? What is the IRR that Jimmy earned on the bond? the answer is in the form: your IRR; Jimmy's IRR 8%; between 23 and 24% between 22and 23%; 12% 12%; between 22 and 23% between 23 and 24%; 8% none of the above