Question $1(10$ points$)$

i$).$ Boce Ltd has $6$ percent annual$-$pay coupon bonds that trade with a yield to maturity of $5\mathrm{.}5$ percent. The bonds have eight years to maturity. What is the current price of the bond? $(2\mathrm{.}5$ marks$)$

ii$).$ Eight years ago, Fred purchased a $7\mathrm{.}5\%$ coupon bond for $$1075.$ Today, he sold the bond for $$1350.$ During the investment period, Fred reinvested all coupons at $4\%.$ What is his rate of return on the bond?

$(3\mathrm{.}5$ marks$)$

iii$).$ Master Toast Inc. has semi$-$annual pay bonds that trade with a yield to maturity of $7$ percent. The bonds have a six$-$year term to maturity and are currently selling for $$1,067\mathrm{.}20.$ What is the bond's coupon rate? $(4$ marks$)$