3. Your next brilliant idea involves opening an elefant farm on Taborstrasse. To finance this you issue the following bond: initial 400.000 maturity (years) 4 coupon 5% Due to the convincing purpose of the bond it could only be sold at 99%. 5 points a.) What is the yield of the bond? Yield: 5 points b.) At the beginning of year 3 you sell the bond to James Bond for 380.000. What is your yield on that deal? Yield: 5 points c.) What is James Bonds yield, if he keeps the bond until maturity? Yield: d.) How much should James Bond have paid for the bond at the beginning of year 3 if he wants a yield of 10%? Price: 5 points