Question: Please show calculation step without using excel four years ago, S . Goodan Corp. issued a bond with a 1 4 % coupon rate, semi

Please show calculation step without using excel
four years ago, S. Goodan Corp. issued a bond with a 14% coupon rate, semi-annual coupon payments, $1,000
face value, and 14-years until maturity.
a) You bought this bond three years ago (right after the bond made its coupon payment) when the yield-tomaturity was 11%. How much did you pay for the bond?
b) Suppose todays yield-to-maturity of the bond is 16% and the next coupon payment is exactly in 6 months from
today. If you sell the bond today, after you have owned it for three years, what would be your capital gain/loss
yield? Remember, the capital gain/loss yield is the return resulting from price changes of your investment.
c) Suppose two years from now (right after the bond made its coupon payment) the bond has a value of $1,000.
What would be the yield-to-maturity of the bond (APR, semi-annually compounded)? Use Excel or a financial
calculator to solve this question.

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