Your client Ellen Ripley wants to invest on a 6-year certificate of deposit, costing $125.66, that pays 6.5% annually (on a bond-equivalent basis) or 3.25% semi- annually and the interest payments are semi-annual. She has asked you for some information on that investment, specifically: (1) What are the total future dollars of this investment at the end of 6 years? [2 marks] (ii) How much total interest is generated from the investment in this certificate of deposit? [3 marks] (iii) Suppose Ellen can purchase any investment for $125.66 that offers a 6.5% yield on a bond-equivalent basis and pays interest semi-annually. What are the total future dollars and the total dollar return from this investment? [5 marks) (iv) Suppose now another client of yours, John McClane, aims to purchase a 6-year 11% coupon bond that pays interest semi-annually and the price of this bond is $125.66. The yield to maturity for this bond is 6.5% on a bond equivalent basis. What are the total future dollars and the total dollar return that will be generated from this bond if it is to yield 6.5%? How are the two bonds different? What would you recommend your clients to do? [50 words) [5 marks] (v) Find the following for Ellen's initial bond: coupon interest, capital gain/loss, reinvestment income, and total dollar return. [5 marks) (v) What percentage of the total dollar return is independent of reinvestment income, and how does Ellen realize the reinvestment income? (50 words) [5 marks)