B H M 13. What is the relationship between the price of an asset that pays a fixed rate of interest and a change in the relevant market interest rate? Explain. 3 5 5 1 2 12. What do you anticipate will happen to a corporation's "FREE CASH FLOW" if state corporate tax rates increase as proposed by the "Fair Tax" referendum on the November ballot in Illinois? Assume no other changes in either the 3 firm's or in macro-economic conditions. Explain your answer. 4 5 6 7 8 9 10 11 10. You have purchased a $1,000,000 million Face or Par Value 15-year T-note. This 10-year T-note pays a 3.5% coupon (paid semi-annually) and has a current market price equal to 95.50% of Face or Par value ($955,000). What is the current Yield to Maturity (YTM) of this 10-year T