A 30-year maturity bond has a 8% coupon rate, paid annually. It sells today for $917.42. A 20-year maturity bond has a 7.5% coupon rate, also paid annually. It sells today for $929.5. A bond market analyst forecasts that in five years, 25-year maturity bonds will sell at yields to maturity of 9% and that 15-year maturity bonds will sell at yields of 8.5%. Because the yield curve is upward-sloping, the analyst believes that coupons will be invested in short-term securities at a rate of 7%. A. Calculate the annual return for the 30-year maturity bond over the next five years.
B. What is the expected return of the 20-year bond.

Christopher kim, cfa, is a banker with batts brothers, an investment banking firm. kim follows the energy industry and has frequent contact with industry executives. kim is contacted by the ceo of a large oil and gas corporation who wants batts brothers to underwrite a secondary offering of the company's stock. the ceo offers kim the opportunity to fly on his private jet to his ranch in texas for an exotic game hunting expedition if kim's firm can complete the underwriting within 90 days. according to cfa institute standards of conduct, kim: a) may accept the offer as long as he discloses the offer to batts brothers.b) may not accept the offer because it is considered lavish entertainment.c) must obtain written consent from batts brothers before accepting the offer.