ection 3.6 Measuring Interest Rates and Asset Prices (15 pts.) Situation 3.4: Suppose you see a $1000 face-value bond with a yearly coupon payment of 580 hati and currently selling for the price of $1040. 1. Referring to Situation 3.4, is the yield to maturity above, below, or equal to 8.0 percent? 2. Referring to Situation 3.4, now assume that you bought this bond (at $1040) and are going to sell it 1 year from now. If the price of the bond falls to $960, what would be your one-year rate of return? Use the Gordon growth model to estima $12.00, the appropriate discount rate is 6 percent, and the company's profits are expected to grow by 2 percent annually 3. te Microsoft's current stock price. Assume next year's dividend payment is section 3.6 Contrasting Hedge Funds against Money Market Mutual Funds (5 pts.) Explain how hedge funds differ from money market mutual funds