A In August, 2020. Immediately after the payment of the annual interest coupon, Colin bought Treasury bond (naturing in August, 2023) with a foce value of $1,000 and a 7% annual coupon rate. He paid 5974 23 for the bond, providing him with a yield to maturity of 3% per annum compound. Now, one year later, Immediately after receiving the 2021 interest coupon payment, Colin sold the bond to Susan, providing her with a yield to maturity of 7.5% per annum compound. 13 Marts REQUIRED 1. What price did Susan pay for the bond? Show answer correct to the nearer cent.] ii. What was Colin's holding period return over the year he owned the bond? (Show answer as a percentage, correct to 2 decimal places. B. Jessica is a long-term fixed interest investor, and wishes to buy a high quality corporate bond. She has 51,000,000 to invest and has a choice of bonds issued by Black Ltd or White Ltd. Both companies are of similar size and have strong credit ratings, and each company is offering bonds at par for a 10 years term to maturity and an 8% annual coupon rate. However, Jessica notes that the bonds issued by Black Ltd have a callable (buy-back) option exercisable by the company after 5 years at 105% of the face value, while the bonds issued by White Ltd have a puttable (extendable) option for an additional 5 years, exercisable at the bond holder's discretion at maturity. [1 mark] Jessica considers that newly issued corporate bond interest rates will remain constant for the next two years, but considers it impossible to predict interest rates on new issues after that time. Advise Jessica on which corporate bonds she should buy, giving reasons, so as to demonstrate your understanding of the callable and puttable options. Tch O 120 SOAR