An investor purchases a nine-year, 7% coupon bond at a price equal to par value. After the bond is purchased and before the first coupon is received, interest rates increase, and thus the semiannual yield-to-maturity for the bond increases from 3.5% to 4%. The investor sells the bond after 5 years. The interest rates remain unchanged over the 5-year holding period, assuming that the reinvestment rate is equal to the yield-to-maturity and all rates are compounded semiannually. 2) Per 100 of par value, the future value of the reinvested coupon payments at the end of the holding period is A. 35.00 B. 46.07 C. 42.02 3) The capital gain/loss per 100 of par value resulting from the sale of the bond at the end of the five-year holding period is closest to a: A. loss of 2.23 I B. loss of 3.37 C. gain of 2.23 D. gain of 3.37 4) Assuming that all coupons are reinvested over the holding period, then what is the investor's five-year holding period return on a semiannual basis? A. 3.32 B. 4.00 C. 2.50