Your parents have discovered a $5,000 bond at the bottom of their safe deposit box. The bond was given to you by your late great-aunt Hilda on your second birthday and set up an account for you. The bond pays an annual interest rate of 6 percent. Interest is paid into the account that was set up for you. You are now 27 years old and the bond has redeemed.
a. What is the total value of the account after the bond has redeemed and principal paid?
b. What has been the holding period return and annualized return for this account?