Consider the following three bonds which you bought today at the listed purchase prices. Bond A: Purchase price $9,600 with Face Value of $10,000 in 1 year. Bond B: a perpetuity has a price of $2,500 and an annual coupon payment of $100 Bond C: Purchase price of $15,540, Face Value of $20,000 in 10 years and pays annual coupon payments of $250 Assume 1 year from now you want to sell these bonds: For each of these bonds calculate price after 1 year and the Holding period Return if the interest rate after 1 year is 2% 7) a. 3 points The onslaught of the Covid-19 pandemic caused the US Treasury yields to lower as coronavirus cases rose to worrisome levels in summer of 2020. Use the diagram for bonds market to explain the impact the pandemic on US Treasury prices and its yield. Use economic language to explain your results. b. 2 points In 1980s the market for junk bonds became more liquid that is junk bonds could be bought and sold more quickly and cheaply. Use the diagram for bonds market to explain the effect of rising liquidity on prices of junk bonds. Use economic language to explain your results