4. (5 pts) You purchase a 25-year government bond with a face value of $1,000 and a coupon rate of 5% paid semi-annually. The market interest rate is 6% annually. a. ( 5 pts) What is the price you are willing to pay for this bond? b. (Bonus 2 pts) This bond is available in the market at the price calculated in part a. Your friend says: "This means the bond's Yield-to-Maturity is 6%. Therefore, if you buy the bond today and keep it until its maturity, your annual return will be 6% ". Do you agree with him? c. (Bonus 2 pts) Compared to a 25-year zero-coupon bond with a face value of $1,000, which one has a higher interest rate risk? Why