Assume you purchased Netflix bonds with a face value of $5000 at 96.98 on April 15, 2023 and you sell them exactly 1 year later.

What is the Netflix bond yield on April 15, 2023?

2. Calculate how much money (in dollars) you made or lost from holding the bond under each of the following scenarios described below (ignore taxes) and answer the secondary question in scenarios 2 and 3. In calculating how much money your made or lost, ensure that you consider both the increase (or decrease) in the bond price as well as the coupon payments you received.

1: Assume that 1 year later, the bond's yield is identical to what it was on April 15, 2023. Calculate how much money you made or lost over the year.

2: Assume that 1 year later, the comparable government yield is identical to what it was on April 15, 2023 but the bond's risk premium has increased by 50 bps. Calculate how much money you made or lost over the year. Identify why the risk premium might increase.