2. Suppose you own $100 face value of a 10 -year bond with a yield to maturity of 7% and which is currently priced at par. If the bond's yield to maturity rises to 8% or falls to 6% the bond's value will change. Which would be a larger dollar amount, your loss, or your gain? Create an example to prove your answer. ( 2 marks) 3. You manage a bond portfolio and feel strongly that interest rates will soon go up. By holding which of the following kinds of bond will you likely make the most or lose the least when rates rise? (2 marks) a) long term, low coupon b) long term, high coupon c) short term, low coupon d) short term, high coupon 4. Calculate the price of these bonds to 2 decimal places. (4 marks 2 marks each) a) 6-year Quebec 5.00\% sa. Investors required a YTM of 7.5\% compounded semi-annually. Mode = N= P/Y= C/Y= I/Y= PMT = FV= PV=