3 Calculate your capital gains and holding period return if you hold for 1 year i. ii. iii. a 10%-coupon-rate bond with 10-year maturity and $1000 face value, which you bought at par this year, if the interest rate falls next year from 10% to 7%. A bond with current price of $500 and pays $50 annually forever, if interest rate falls from 10% to 7% Government of Canada T-bill currently selling for $1502.63, matures in 3 years and has a Face Value of $2000, if interest rate falls next year from 10% to 7% Given your answers which bond would you want to hold if you expect interest rates to fall from 10% to 7% next year. [Note: you will have to calculate price after 1 year for each of these in order to calculate capital gains and Return after 1 year]