Charles reviews todays bond prices as quoted on the Bond website for M Country bonds with a 10-year maturity, par value of $1,000 and coupon rates paid annually as shown in the table below:

type of bond	market price	coupon rate - %
A government securities	667.97	0.70%
A corporate bonds	698.49	1.50%
B corporate bonds	702.79	1.80%
C corporate bonds	695.17	2.50%
D corporate Bonds	897.04	6.00%

i) Calculate the yield to maturity and default risk premium of the above bonds.

ii) Discuss why Charles should also consider buying D corporate bonds and the risk and potential rewards involved (Max Word Count: 200 words).

iii) If market interest rates are expected to change in the near future, advise Charles what strategy he should adopt if he plans to invest in the bond market (Max Word Count: 100 words).