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. Assume a year ago the U.S. Treasury yield curve was flat at a rate of 4% per year (with annual compounding) and you

. Assume a year ago the U.S. Treasury yield curve was flat at a rate of 4% per year (with annual compounding) and you bought a 30-year U.S. Treasury bond. Today it is flat at a rate of 5% per year (with annual compounding). What rate of return did you earn on your initial investment: a. If the bond was a 4% coupon bond? b. If the bond was a zero-coupon bond?

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