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Consider the following bond for questions 5 - 8 : - Exactly 10 years to maturity - 7.5% yield to maturity - 5% coupon, paid

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Consider the following bond for questions 5 - 8 : - Exactly 10 years to maturity - 7.5\% yield to maturity - 5% coupon, paid semi-annually - \$100 par value Question 5 If the yield remains constant, what is your rate of return for the if you hold the bond for exactly 1 year and sell it thereatter. Assume that coupons are reinvested at the prevaling yield. Express your answer in percentage terms, rounded to 2 decimal places (e.g. 10.50% ). Question 6 1 pts If the yield remains constant, what is your rate of return for the if you hold the bond for exactly 7 years and sell it thereafter. Assume that coupons are reinvested at the prevailing yield. Express your answer in percentage terms, rounded to 2 decimal places (e. - . 10.50%)

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