7. If interest rates are expected to fall investors should buy (High/Low] coupon, [Long/ Short] term bonds because they are more volatile and therefore have a greater % of [Income / Capital Gain / Capital Loss] 8. The difference between the cost of commercial paper and its maturity value is taxed as [Income / Capital Gain / Capital Loss). 9. Bond prices are less sensitive to a 1% change in yield when yields are initially [High/Low] 4. Calculate the price of these bonds. SHOW YOUR WORK. (4 marks) a) 4-year Quebec 6.00% semi-annual, $100 par value. Investors require a yield to maturity of 7% compounded semi-annually