4)) Your broker calls you with an opportunity to purchase a bond. He offers you a price of % of principal amount. It has a $1000 principal amount, 8 years until it matures and a coupon of 5.8%. The bond you are considering pays interest semi-annually. Other similar bonds in the market with similar ratings are trading at a yield to maturity of55%. a) Would you buy the bond? Show quantitatively why or why not by calculating yield to maturity at the offering price. (Note: for inputs to calculator, PV must be negative and FV must be positive.) b) What do you tell him is the most you would be willing to pay for the bond? c) Your broker calls you up today and tells you interest rates have risen. What happened to the price (value) of your bond? ( (20 points) No calculations necessary)