Suppose that you purchased a Ba rated $5.000 annual coupon bond with an 14.3% coupon rate and a 20y ear maturity. The current rate on 20 -year US treasuries is 3%. If you purchased it at a 11.749% premium to par value, how much did you pay? Question 2 Suppose that you purchased a Baa rated $1000 annual coupon bond with an 12% coupon rate and a 13 -year maturity at par value. The current rate on 13 -year US treasuries is 3%. Two years later, you look in the newspaper, and find that the yield on comparable debt is 6.172%, how much is the bond currently worth? Question 3 Suppose that you purchased a A rated $5,000 annual coupon bond with an 5.8% coupon rate and a 13 -year maturity at par value. The current rate on 13-year US treasuries is 3%. Two years later. you sell the bond, and for a yield of 8.984%, what was your capital gain (+) or capital loss () in dollars and cents? (make your answer positive for a gain, negative for a loss).

1. Suppose that you purchased a Ba rated $5.000 annual coupon bond with an 14.3% coupon rate
and a 20y ear maturity. The current rate on 20 -year US treasuries is 3%. If you purchased it at a
11.749% premium to par value, how much did you pay? Question 2 Suppose that you purchased
a Baa rated $1000 annual coupon bond with an 12% coupon rate and a 13 -year maturity at par
value. The current rate on 13 -year US treasuries is 3%. Two years later, you look in the
newspaper, and find that the yield on comparable debt is 6.172%, how much is the bond currently
worth? Question 3 Suppose that you purchased a A rated $5,000 annual coupon bond with an
5.8% coupon rate and a 13 -year maturity at par value. The current rate on 13-year US treasuries
is 3%. Two years later. you sell the bond, and for a yield of 8.984%, what was your capital gain (+)
or capital loss () in dollars and cents? (make your answer positive for a gain, negative for a loss)