6. At the time of the last referendum, Quebec provincial bonds carried a higher yield than comparable Ontario bonds because of investors' uncertainty about the political future of Quebec. Suppose you were an investment manager who thought the market was overplaying these fears. In particular, suppose you thought that yields on Quebec bonds would fall by 50 basis points. Which bonds would you buy or sell? Explain your reasoning. (10 marks) 9. Two years ago, Braemar Corp. issued 12-year bonds with a face value of $1,000 and a coupon rate of 7.1%. The bonds make semi-annual payments. If these bonds currently sell for 105% of par value, what is the YTM? (10 marks)