answer question 1 and 3

Review Test Submission Quix Bond Value Calor Whox + dabasser vierevisto de 40005547 course de 291861 cod 11230061 return content Question 1 Dout of 2 points Suppose you purchased a ten-year, 8% coupon bond (annual coupon payment) at $980. Two years later, you decide to take a vacation and sell the bond to acquire the necessary funds. At the time you sell the bond, eight-year bonds with similar characteristics sell for yields of 9%. What is your realized yield on the bond? Selected swer c7.12% Question 2 2 out of 2 points Assuming annual coupon payment, a 3-year 8% coupon bond has a yield to maturity 9 percent. What is the duration? If market rate decrease by 0.75%, what's the percentage change in bond price using the duration estimation approach? Selected Answer o. Duration=2.78 years: % change in bond price=1.91% increase Questions Suppose you purchase a $1.000 bond with a coupon rate of 8% matures in 5 years at par, and you plan to sell it at the end of 3 years at the prevailing market price. When you purchase the bond, your investment advisor predicts that similar bonds with 2 years to maturity yield at 6%. What is the expected yield to maturity on the bond? 11.89% Question 4 A 12-year 5 percent coupon bond pays interest annually. The bond has a face value of $1,000. What is the percentage change in the bond price if the market yold rises to 6 percent from the current yield of 4.5 percent? 1238 percent decrease