Part A: Suppose you purchased a bond in the year 2023 that h…
Part A: Suppose you purchased a bond in the year 2023 that had the following characteristics: a $100 coupon payment, a $1,000 face value, a 8% yield to maturity, and 6 years until maturity. Please calculate the price you would have paid for this bond. Please include the Dollar sign ($) in your answer and round your answer to the nearest one hundredth (second decimal place). Part B: Suppose you bought the bond from Part A in 2023. In 2024 the yield to maturity decreases from 8% to 6%. How much could you sell the bond for in 2024? Please include the Dollar sign ($) in your answer and round your answer to the nearest one hundredth (second decimal place). Part C: Calculate the current yield you would have earned over this period. Please enter your answer in percentage points and include the percent (%) sign and round your answer to the nearest one hundredth (second decimal place). Part D: Calculate the rate of capital gain you would have earned over this period. Please enter your answer in percentage points and include the percent (%) sign and round your answer to the nearest one hundredth (second decimal place). Part E: Calculate the one year holding period rate of return. Please enter your answer in percentage points and include the percent (%) sign and round your answer to the nearest one hundredth (second decimal place).