5) Gilead Sciences, the has the following two bonds outstanding that they issued 5 years ago at par value price was $1000 at the time of issue): Bond 1: $1000 par value bond with 15 years maturity at the time of issue, and paying a coupon rate of 3.6% compounded semiannually. Bond 2: $1000 par value zero coupon bond with 9 years maturity at the time of issue. a) Suppose Karin currently holds both bonds in her portfolio, but she has to sell (liquidate) one of these bonds today because she needs the cash. What is the most likely price Karin will be able to receive for each bond, if the required rate of return on the bonds is a nominal 4.8% today? b) If Karin bought the Gilead Bond 1 when it was issued 5 years ago at par value, and she sells the bond today at 5900, what rate of return does she earn from the Gilead Bond 1? 5) Gilead Sciences, the has the following two bonds outstanding that they issued 5 years ago at par value price was $1000 at the time of issue): Bond 1: $1000 par value bond with 15 years maturity at the time of issue, and paying a coupon rate of 3.6% compounded semiannually. Bond 2: $1000 par value zero coupon bond with 9 years maturity at the time of issue. a) Suppose Karin currently holds both bonds in her portfolio, but she has to sell (liquidate) one of these bonds today because she needs the cash. What is the most likely price Karin will be able to receive for each bond, if the required rate of return on the bonds is a nominal 4.8% today? b) If Karin bought the Gilead Bond 1 when it was issued 5 years ago at par value, and she sells the bond today at 5900, what rate of return does she earn from the Gilead Bond 1