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Part $1$

$($Bond

valuation$)$

At the beginning of the$$ year, you bought a

$$$$1,000$

par value corporate bond with an annual coupon rate of

$13$

percent and a maturity date of

$19$

years. When you bought the$$ bond, it had an expected yield to maturity of

$9$

percent. Today the bond sells for

$$$$1,620.$

a$.$ What did you pay for the$$ bond?

b$.$ If you sold the bond at the end of the$$ year, what would be your$$ one$-$period return on the$$ investment? Assume that you did not receive any interest payment during the holding period.