Consider a five-year bond with a face value of $100, 000. The market yield is 6.00% p.a. and the bond pays semi-annual couple of $3000

(a) Without calculation, identify and explain the implied price of this bond.

(b) If you bought the bond at the implied price (answer to part (b)) and hold it until maturity, what was you holding period yield (no calculation needed)?

(c) Two years after your purchase, you consider to sell the bond. If the market yield increases to 8% by then, briefly explain if you would earn a higher holding period yield than holding the bond until maturity (no calculation needed).