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On December 31^st, 2014 you decided to buy a 30 year Government of Canada bond. The bond had a face value of $100,000. The coupon rate on the bond was 6%. Coupons were paid semi-annually. On December 31^st, 2014 the yield to maturity on Government of Canada bonds was 5% per year, compounded semi-annually. (The term structure of interest rates was flat.)

After holding the bond for 4 years you decided to sell the bond on December 31^st, 2018. Prior to selling the bond you received the December 31^st, 2018 coupon payment. On December 31^st, 2018 the yield to maturity on Government of Canada bonds was 4% per year, compounded semi-annually. (The term structure of interest rates was flat.)

a) How much did you pay for the bond on December 31^st, 2014?

b) How much did you sell the bond for on December 31st, 2018?

c) What was the effective annual rate of return that you earned on your investment during the 4 years?

d) Suppose you postponed selling the bond until April 30^th, 2019. On April 30^th, 2019 the yield to maturity on Government of Canada bonds is 3.5% per year, compounded semi-annually. (The term structure of interest rates is flat.) What is the full price, the clean price, and the accrued interest on April 30^th, 2019? Please note: the settlement date falls between coupon payment dates. For simplicity, assume that there are 30 days in a month and 360 days in a year.