29. Today (T=0), an investor purchased a 20 year bond with a 5.00% coupon and a face value of $100,000 for $106,550. In six months (T=0.5) interest rates have decreased by 0.50% and the investor decides to sell the bond immediately after receiving the first coupon payment. What is the investor's total gain (loss) on the bond? HINT: Total Gain (Loss) = Price Change in Bond + Coupon A. $4699 B. $4704 C. $9,398 D. $9,403 E. $9,408 I 30. Which of the following statements is most likely FALSE: HINT: If in doubt, try it out. Make sure to think in % change (delta y/ delta x) not $ change. a. b. c. As coupon rate decreases, bond price decreases As credit quality improves, yield to maturity increases A 10 year corporate bond is yielding 9% while a 10 year government bond (treasury) is ylelding 7% d. A 10 year maturity bond is less sensitive to changes in interest rates than a 30 year maturity bond e. As yield to maturity decreases, bond price increases 31. Increasing the number of equally weighted stocks in a portfolio from 10 to 20 will most likely: b. C d. Increase diversifiable risk Increase market risk Decrease market risk Decrease total risk Decrease non-systematic risk e