Bunkys burgers issues some new 1000 par value subordinated debenture bonds with a coupon rate of 12% payable semi annually. the bonds mature 30 yrs. the bond does not ontain a call feature or a converson feature. the market intrest rate on similar bonds at the time of issuance is 13% compounded semi annually. you buy a bond. ten years later the market interest rate on 20 yr bonds is 10% coumpounded semi annually. you sell your bond. Compute the annual rate of return you earned over the 10 yr period.

Change the assumptions of the problem and now suppose the bond is callable at 1065. it is also convertible into bunkys common stock at a conversion rate of 10 shares per bond. at the end of the 10 yr holding period bunkys common stock is selling for 125 per share. the firm calls the bond. compute annual rate of return you earned over 10 yr period. please show all work.