Question: I would like the answers for these case study questions showing clearly how they are calculated. Issuer Face Value Coupon Rate Rating Quoted Price $

I would like the answers for these case study questions showing clearly how they are calculated.

Issuer	Face Value	Coupon Rate	Rating	Quoted Price $	Years Until Maturity	Sinking Fund	Call Period
ABC Energy	1000	6%	AAA	809.10	20	Yes	3 Yrs
ABC Energy	1000	0%	AAA	211.64	20	Yes	N/A
Trans Power	1000	10%	AA	1025.00	20	Yes	5 Yrs
Telco Utilities	1000	12%	AA	1300.00	30	No	5 Yrs

1. One of Jill's best clients poses the following question: If I buy 10 of each of these bonds, reinvest any coupons received at the rate of 6% per year, and hold them until they mature, what will my realized return be on each bond investment? How should Jill go about demonstrating the solution to this question?

2. Why is there so much variation in the coupon rates and prices of these various bonds? asks one of Jill's wealthiest clients. How should Jill respond?

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