A $1,000 par value bond was issued 30 years ago at a 12 percent coupon rate....

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A $1,000 par value bond was issued 30 years ago at a 12 percentcoupon rate. It currently has 25 years remaining to maturity.Interest rates on similar obligations are now 8 percent. Assume Ms.Bright bought the bond three years ago when it had a price of$1,090. Further assume Ms. Bright paid 40 percent of the purchaseprice in cash and borrowed the rest (known as buying on margin).She used the interest payments from the bond to cover the interestcosts on the loan. a. What is the current price of the bond? UseTable 16-2. (Input your answer to 2 decimal places.) b. What is herdollar profit based on the bond’s current price? (Do not roundintermediate calculations and round your answer to 2 decimalplaces.) c. How much of the purchase price of $1,090 did Ms. Brightpay in cash? (Do not round intermediate calculations and round youranswer to 2 decimal places.) d. What is Ms. Bright’s percentagereturn on her cash investment? Divide the answer to part b by theanswer to part c. (Do not round intermediate calculations. Inputyour answer as a percent rounded to 2 decimal places.)

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A $1,000 par value bond was issued 30 years ago at a 12 percentcoupon rate. It currently has 25 years remaining to maturity.Interest rates on similar obligations are now 8 percent. Assume Ms.Bright bought the bond three years ago when it had a price of$1,090. Further assume Ms. Bright paid 40 percent of the purchaseprice in cash and borrowed the rest (known as buying on margin).She used the interest payments from the bond to cover the interestcosts on the loan. a. What is the current price of the bond? UseTable 16-2. (Input your answer to 2 decimal places.) b. What is herdollar profit based on the bond’s current price? (Do not roundintermediate calculations and round your answer to 2 decimalplaces.) c. How much of the purchase price of $1,090 did Ms. Brightpay in cash? (Do not round intermediate calculations and round youranswer to 2 decimal places.) d. What is Ms. Bright’s percentagereturn on her cash investment? Divide the answer to part b by theanswer to part c. (Do not round intermediate calculations. Inputyour answer as a percent rounded to 2 decimal places.)