3. For each of the bonds and reinvestment rates listed below calculate the amount of money accumulated at the end from a $1000 initial investment: (a) Invest $1000 in a 4-year zero coupon bond with a yield to maturity of 8 %. (b) Buy a 4-year 8% coupon annual pay bond at par (i.e. the buying price is $1000) and reinvest the annual coupons at 5% (annual compounding). (c) Same as (b) but reinvest the annual coupons at 10%. (d) For (a) through (c) calculate the annual holding period return. What can you conclude about the relationship between yield to maturity and holding period returns? 3. For each of the bonds and reinvestment rates listed below calculate the amount of money accumulated at the end from a $1000 initial investment: (a) Invest $1000 in a 4-year zero coupon bond with a yield to maturity of 8 %. (b) Buy a 4-year 8% coupon annual pay bond at par (i.e. the buying price is $1000) and reinvest the annual coupons at 5% (annual compounding). (c) Same as (b) but reinvest the annual coupons at 10%. (d) For (a) through (c) calculate the annual holding period return. What can you conclude about the relationship between yield to maturity and holding period returns