19 points) Today, Kramerica Industries, a company with a speculative new oil tanker containment system that will be available for purchase soon, is planning to issue a new bow that will have four years to maturity and foce value of $1.000 The bond will pay a coupons and have a coupon rate of 7.1%. The compay has hired you to set it with pricing its now bond. Your mearch has revealed thnt the real risk-free tate in the economy is 300%. You also know that the Inflation premium 1.50%. The default risk premium for bonds of the same Tiskas Kama's is 2.55% and the market is likely to apply 1.10% liquidity premium to four-year bonde i. What should be the price of Kramerica's bond il. Suppose that you an optimistic about Kramerica Industries prospects and consequently, you purchased one of its bonds immediately upon its A few moments after purchasing the boud a shock the economice Totument les increased companies' defalt risk for the next four years. The consents among economists les that default risk pitem on all bonds in the economy should increase by 2.21%. All other factors in the economy remain unchanged. You decided to continue to hold the band tilt, rinting the first coupon payment received during the holding period at the prevailing yield with antal compounding Att - 2. you receive the bood's coupon payment, and immediately afterwards, you dl the bond. Asume the pre valling yield remains constant over the remainder of the bond's life. What was your annualized holding period return ill. Upon selling the boud, you discover that realized inflation during your two your holding period w 1.50% per year. Did investing in the bond wat in an increase, decrease, or no change to your purchasing power 13