Question: Q #: 3 , 4 , 5 ] Four years ago, James, Inc. issued a bond with a par value = $ 1 , 0

Q #: 3,4,5] Four years ago, James, Inc. issued a bond with a par value = $1,000, Coupon rate =7.0% per annum,
payable every six months, and a maturity of 10 years. The YTM of similar bonds today is 10.0%. Johnny bought
James Bond for $1,050 when it was initially issued four years ago.
3. What is the price of James Bond today?
4. If he holds on to James Bond until it matures, what ANNUALIZED rate of return will he earn?
5. If Johnny decides to sell James Bond today, what ANNUALIZED rate of return would he earn?

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