The Whittier Union High School District in Whittier, California is issuing $18 million in new muniicpal bonds as follows:

Coupon rate: 4.00%

Pay frequency; Semiannual

First coupon pyament date: 8/1/2014

Maturity date: 8/1/2022

Standard and Poors rating: AA-

1. An investor purchased 300 of these bonds on February 1, 2014 at a price of $110.89 per bond. Neglecting any brokerage fees, compute the cost of this investment.

2.Compute the semiannual coupon payment this investor will receive.

3. If the investor holds these bonds until maturity, compute the total payment (including the last coupon payment) that will be made to the investor on the maturity date.

4. What is the annualized rate of return on this investment, if held to maturity. Neglect any brokerage fees and express your answer as a percentage (for example, 10% would be input at 10) rounded to the nearest 0.01.

5. If, on 8/1/2019, 3-year municipal bonds with an AA- rating and a coupon rate of 6.50% (payable semiannually) are selling for $100.00, what would be the fair market value of the 300 Whittier bonds (not including the 8/1/2019 coupon payment)?

6. If, immediately afte receiving the 8/1/2019 coupon payment, the investor sells all 300 of the Whittier bonds for the fair market value computed in Quesiton 5, what would be the annulized rate of return on this investment? Express your answer as a percentage (i.e. 10% would be inptu as 10) and round off to the nearest 0.01