dlena.edu 1) Suppose that you are considering the purchase of a coupon bond that has the following future payments: S600 in one year, S600 in two years, $600 in three years, and $600+ $10,000 irn four years. (12 points) hat Is the bond worth today ifthe market interest rate is 6%? what is the bond's current viel b. Suppose that you have just purchased the bond, and suddenly the market interest rate falls to 5% for the foreseeable future. What is the bond worth now? What is its current yield now? c. Suppose that one year has elapsed, you have received the first coupon payment of $600, and the market interest rate is still 5%. How much would another investor be willing to pay for the bond? What was your total return on the bond? If another investor has bought the bond a year ago for the amount you calculated in (b), what would the investor's total return have been? d. Suppose that two years have elapsed since you bought the bond, and you have received the first two coupon payments for $600 each. Now suppose that the market interest rate suddenly jumps to 10%. How much would another investor be willing to pay for your bond? What will the bond's current yield be over the next year? Suppose another investor has bought the boned at the price you calculated in (c). What would that investor's total return have been over the past year