3 4 34 5 Question 1: 6 A bond will pay an annual 7.5 per cent coupon until maturity (the 7 next coupon will be paid in one year). The bond matures in six 8 years. 9 10 (a) What will be the market price of the bond if yields to maturity 11 for this risk class fall to (%): t is 12 tro 13 7,1 14 (b) What will be the market price of the bond if yields to maturity 15 for this risk class rise to (%): 12,9 16 17 18 19 20 21 23 222