Arjay purchases a bond, newly issued by Amalgamated Corporation, for $1,000. The bond pays $60 to its holder at the end of the first few years and pays $1,060 upon its maturity at the end of the 3 years. a. What are the principal amount, the term, the coupon rate, and the coupon payment for Arjay's bond? Instructions: Enter your responses as whole numbers. Principal amount: $ ped Term: years . Coupon rate: % Book Coupon payment: $ Print b. After receiving the second coupon payment (at the end of the second year), Arjay decides to sell his bond in the bond market. What price can he expect for his bond if the one-year interest rate at that time is 3 percent? 8 percent? 10 percent? Instructions: Enter your responses as whole numbers. ferences Expected price for the bond at: 3 percent: $ 8 percent: $ 10 percent: $ c. Suppose that after two years, the price of Arjay's bond falls below $1,000, even though the market interest rate equals the coupon rate. One possible reason is that: bad news arrives about Amalgamated Corporation, leading financial investors to strongly believe that the firm would promptly pay off its debt in one year