10. When open market operations are used to increase bank capital, the yield on all debt instruments goes up or down? 11. If the coupon rate is greater than the yield to maturity, does the bond trade at a premium or a discount? inflation rate is 3.5%. An Use the following information to answer questions 13 through 15 Assume an investor with a 5 year investment horizon is considering purchasing a 7 year 7% coupon bond selling for $100 (par value is also $100). Over the investment horizon, the investor expects to reinvest the coupons at 6%. At the end of the investment horizon, the investor expects the yield to maturity to be 5% for the rest of the life of the bond. 13. Compute the total coupon payments plus interest on the coupons over the investment horizon? 14. How much does the investor expect to be able to sell the bond for at the end of the investment horizon? 15. What is the expected total return for this bond