Consider a 1-year zero-coupon bond with a face value of 100 USD/bond which promises an annual yield to maturity of 3%. To realize that yield, today's spot price is 97.087378 USD/bond. Suppose you buy one bond, Ceteris paribus, what would the price of the bond be in six months from today? 98.532927 USD/bond 100 USD/bond 98.087378 USD/bond 97.087378 USD/bond Following from the previous question: Suppose that six months have gone by and now the annualized interest rate has increased to 3.75%. If you were to sell this bond today, how much will a buyer be willing to pay to get an annualized 3.75% return? (Remember that the price of the bond will be 100 USD/bond at maturity) 98.176138 USD/bond 100 USD/bond 200 USD/bond 150 USD/bond Following from the previous questions: Given the price at which you bought the bond at and the new price you computed, what are your MTM profits? Will the return on your investment be higher of lower than what was offered initially? -0.356788 USD, lower and equal to 2.255423% 0.356788 USD, higher and equal to 3.255423% 0.356788 USD, higher and equal to 3.255423% 50 USD, higher and equal to 3.255423% Following from the previous questions: Suppose that given the lower return you would have realized if the sale had taken place, you decide not to sell the bond and decide to wait until the bond matures. What would the annualized return of this trade be? 3.000000% 3.750000% 100.0000% 150.0000%