Finance

On December $31$st$,2013,$ you decided to buy a $40-$year Government of Canada bond. The bond had a face value of $$100,000.$ The annual coupon rate on the bond was $5\mathrm{.}40\%.$ Coupons were paid semi$-$annually. On December $31$st$,2013$ the yield to maturity on Government of Canada bonds was $4\mathrm{.}70\%$ per year. $($The term structure of interest rates was flat.$)$ After holding the bond for $10$ years you decided to sell the bond on December $31$st$,2023.$ Prior to selling the bond you received the December $31$st$,2023$ coupon payment. On December $31$st$,2023$ the yield to maturity on Government of Canada bonds had decreased to $3\mathrm{.}30\%$ per year. $($The term structure of interest rates was flat.$)$ a$)$ How much did you pay for the bond on December $31$st$,2013?$ b$)$ How much did you sell the bond for on December $31$st$,2023?$ c$)$ What was the effective periodic rate of return that you earned on your investment during the $10$ years? d$)$ What was the effective annual rate of return that you earned on your investment during the $10$ years? Use Excel computation please