You paid $5,000 to buy a Canadian Tire bond with a face value (maturity value) of $ 5,000 that matures in 30 years and has a coupon rate of 4% payable semi -annually. (a) Calculate t he semi -annual coupon payment.  ANSWER: You sell the bond in 7 years, when the interest rate on similar bonds is j 2 = 5.4% . (b) How many coupons (payments) are left?  ANSWER: (c) How much is your expected gain or loss on the sale of the bond?   B/E P/Y C/Y N I/Y PV PMT FV

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