4.Today ist= 0. You have just bought a five-year zero-coupon Treasury bond with $1,000 face value. You paid $950.

(a)What is the annually compounded yield to maturity on the bond?

(b)Suppose that yields at all maturities increase to 2% immediately after you have purchased the bond. Calculate the annualized holding period return if you sell the bond one year after you have purchased it, att= 1.

(c)What is the annually compounded yield to maturity on the bond att= 1?

(d)Suppose instead that you did not sell the bond att= 1 and held it to maturity. What is the annualized holding period return for the five year investment?