Assume that you purchase a 4-year $1,000 par value bond, with a 9% coupon, and a yield of 7%. After you purchase the bond, one-year interest rates are as follow, year 1=7%, year 2=8%, year 3=9% (these are the reinvestment rates). Calculate the realized horizon yield if you hold the bond to maturity. Interest is paid annually. (6 marks) A $1,000,5%,20-year bond has a yield of 6.5%. If the yield remains unchanged, how much will the bond value increase by in the next three years? Assume interest is paid semi-annually. (5 marks) An 8.4 percent coupon bond issued by the state of Indiana sells for $1,000. What coupon rate on a corporate bond selling at its $1,000 par value would produce the same after-tax return to the investor as the municipal bond if the investor is in the 15 percent marginal tax bracket