6. You are considering an investment in two different bonds. One bond matures in five years and has a face value of $1,000. The bond pays an annual coupon of 9.75% and has a 10% yield to maturity. The other bond is a 4year zero coupon bond with a face value of $1,000 and has a yield to maturity of 10%. a. What is the price of each bond? (2 points) b. What is the duration of each bond? (3 points) C. If the yield to maturity of each bond were to immediately increase to 13%, what would he the percentage change (including the correct Sign) in the price of each bond (from the price found in part a)? (2 points) d. If the yield to maturity of each bond were to immediately decrease to 7%, what would be the percentage change (including the correct Sign) in the price of each bond (from the price found in part a)? (2 points) e. Assume that you plan on holding the coupon bond for five years and reinvesting all of the coupons when they are received at the going interest rate (which is the yield to maturity). Assume that after the zero matures you invest in a 1year security that earns the going interest rate. (10 points) 1. Set up a table where you show what happens to the value of each investment (zero and coupon bond) over time if the yield to maturity remains at 10%. Specifically, show what the cumulative value of each investment (including the value of the reinvested coupons for the coupon bond) would be at the end of each of the neXt five years. For example, at the end of Year 1, you would calculate the value of the coupon bond (with one year less remaining until