3. Consider a bond that promises the following cash flows. The required discount rate is 8%. 0 4 Year Promised Payments 240 250 190 320 You plan to buy this bond, hold it for two and a half years, and then sell the bond. a. What total cash will you receive from the bond after the two and a half years? b. Assuming all market interest rates are 8%, what is the duration of this bond? Assume that periodic cash flows are reinvested at 8%. C. If immediately after buying this bond, all market interest rates drop to 5% (including your reinvestment rate), what will be the impact on your total cash flow after two and a half years? d. How does your result in part (c) compare to part (a)? How does your result in part (b) compare to your holding period? What do you learn from this example