Bond A & Bond B both mature in 15 years. Bond A has coupon that pays every 3 months starting March 30, 2010. It pays coupons 7.5% years 0-4, 5.5% years 5-9, 4.5% years 10-12, and no other coupons till maturity. Bond B is a semi-annual bond coupon bond. The YTM of both bonds is 6.5%. Assume both bonds are Canadian corporate bonds.

a) If an investor purchases 10 units of Bond B at par and sells it December 30,2017 what is his/her percent return. YTM = 6%. assume the coupons are not reinvested.

b) If an ivestor purchases 5 units of Bond A at the current price and sells it in June 30, 2019 what is his percent return. YTM=7%. assume the coupons are reinvested at 10% APR.