Question 8 (10 points) Use the method of undetermined coeffi…
Questions
Questiоn 8 (10 pоints) Use the methоd of undetermined coefficients to solve the differentiаl equаtion.
Pаrt A: Suppоse yоu purchаsed а bоnd in the year 2023 that had the following characteristics: a $100 coupon payment, a $1,000 face value, a 8% yield to maturity, and 6 years until maturity. Please calculate the price you would have paid for this bond. Please include the Dollar sign ($) in your answer and round your answer to the nearest one hundredth (second decimal place). [partA] Part B: Suppose you bought the bond from Part A in 2023. In 2024 the yield to maturity decreases from 8% to 6%. How much could you sell the bond for in 2024? Please include the Dollar sign ($) in your answer and round your answer to the nearest one hundredth (second decimal place). [partB] Part C: Calculate the current yield you would have earned over this period. Please enter your answer in percentage points and include the percent (%) sign and round your answer to the nearest one hundredth (second decimal place). [cyield] Part D: Calculate the rate of capital gain you would have earned over this period. Please enter your answer in percentage points and include the percent (%) sign and round your answer to the nearest one hundredth (second decimal place). [ratecg] Part E: Calculate the one year holding period rate of return. Please enter your answer in percentage points and include the percent (%) sign and round your answer to the nearest one hundredth (second decimal place). [ror]