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  3. you own some bonds issued by bayshore inc. these b

You own some bonds issued by Bayshore Inc. These bonds have a face value of...

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You own some bonds issued by Bayshore Inc. These bonds have a face value of $1000, 7% coupon rate (paid semi-annually), current market value of $925, and will mature 10 years from now. You anticipate needing to sell the bonds two years from now. You expect the market price of the bond to be $1,195 at that time. If you sell your bond at this price, your holding period return over the 2 years would be (Please enter your answer with 2 decimal places and in percentage format. Do not use commas or units) Your Answer: Answer Rory's foundation supports numerous children's charities. Suppose Rory wanted to establish a scholarship fund which would pay an annual scholarship of $23,000 forever. Scholarships would be paid at the beginning of each year. How much would Rory have to invest today to establish this scholarship fund? Assume the account can earn interest of 5.50% compounded annually. (Please enter your answer with 2 decimal places. Do not use commas or units) Your

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