A. Immediate check B. Annual instalments 11. A broker offers you an investment opportunity that will pay you $5000 a year for the next 5 years, starting 3 years from now. To take advantage of this opportunity, you need to invest $14,000 up front. Assuming you require a 12% annual return for this type of investment, should you do What is the most you should be willing to pay for this investment? it? 12. A 15 year bond currently sells at par. It offers semi-annual payments and the payment is $36. What is the yield to maturity of this bond? 13. If the price of a bond that currently sells at par increases, what happens to its coupon rate? 14. If the price of a bond that currently sells at par increases, what happens to its yield to maturity? 15. Complete the following table based on bond characteristics and their expected affect on bond prices: Characteristic Higher Yield Lower Yield Higher rating Call provision nat