27.a.You just bought a one year government bond with a face value of $100 at a price

of $94.30.What is the implied rate of interest in this transaction? ____

b.After you purchase the bond in part a above, the interest rate moves to 7%.How

much would you profit or lose from the interest rate change? __________

c.You have just purchased a bond that matures in 2 years and will pay $100 at

maturity. You paid $89.00 for this bond.What is the implied rate of interest on this bond?______

d.After purchasing the bond in the previous question, the interest rate moves to 5%.

How much would you profit or lose from the interest rate change?_______

e.You have just purchased a bond that matures in 10 years and will pay $100 at maturity.You paid 55.80.After you purchased the bond, the interest rate moves to 5%.How much would you profit or lose from the interest rate change? _____