1. An investor purchases a nine-year, 7% semi-annual coupon payment bond at a price equal to par value. After the bond is purchased and before the first coupon is received, yields increases to 8%. The investor sells the bond after five years. Assume that interest rates remain unchanged at 8% over the five-year holding period. Par value is $1,000. (1) What is the future value of the reinvested coupon payments at the end of the holding period? (2) What is the capital gain/loss per $1,000 of par value resulting from the sale of the bond at the end of the five-year holding period? (3) Assuming that all coupons are reinvested over the holding period, what is the investors five-year total return?