4. You are considering rnaking an inveslment for the extra money that you haye for the next year. There are only making an investment for the extra money that you haye for the nexi audd sell it in 1 year. b) possible options; a) Buy a 4 ycar boud (A) that pays 5% coupon Assunde that both bonds are purchased at the price of 51,000 , which is equal to its face Yalue. a) With an equal chance (50%) the market inlerest rate can be cither 3% or 7% at the time of sales. Calculate the priee of each bond when the interest rate is 3% and 7%, respectively. b) Calculate the rate of return of each bond (assuming that you purchased this bond at $1000 ) when the interest rate is 3% and 7%, respectively