Consider a $5000 par value bond that pays 6 quarterly coupons at a nominal rate of 7% compounded quarterly. Suppose that the bond was purchased for $5242.37. (a) Use the method of averages to approximate the effective yield rate compounded quarterly. State the final result as a percent to 4 decimal places. y(4) % compounded quarterly (b) Evaluate each of the following using the rounded result from part (a): Price using the Method of Averages yield = $ Rate of Change of Price (to 2 decimals) using the method of Averages yield = $ change per % [Hint: Differentiate the bond price wr.t. the yield rate y().] (C) Use the results in parts (a) and (b) to complete 1 iteration of Newton's method to approximate the effective yield rate compounded quarterly. State the final result as a percent to 4 decimal places. % compounded quarterly Consider a $5000 par value bond that pays 6 quarterly coupons at a nominal rate of 7% compounded quarterly. Suppose that the bond was purchased for $5242.37. (a) Use the method of averages to approximate the effective yield rate compounded quarterly. State the final result as a percent to 4 decimal places. y(4) % compounded quarterly (b) Evaluate each of the following using the rounded result from part (a): Price using the Method of Averages yield = $ Rate of Change of Price (to 2 decimals) using the method of Averages yield = $ change per % [Hint: Differentiate the bond price wr.t. the yield rate y().] (C) Use the results in parts (a) and (b) to complete 1 iteration of Newton's method to approximate the effective yield rate compounded quarterly. State the final result as a percent to 4 decimal places. % compounded quarterly