Even though most corporate bonds In the United States make coupon payments semlannually, bonds Issued elsewhere often have annual coupon payments. Suppose a German company Issues a bond with a par value of 1,000,27 years to maturity, and a coupon rate of 3.6 percent pald annually. If the YTM is 3.2 percent, what Is the current bond price in euros? Note: Do not round Intermedlate calculatlons and round your answer to 2 decimal places, e.g., 32.16. Bond J has a coupon rate of 3 percent. Bond K has a coupon rate of 9 percent. Both bonds have 18 years to maturity, make semlannual payments, and a YTM of 6 percent. The par value is $1,000. a. If Interest rates suddenly rise by 2 percent, what is the percentage change In the price of these bonds? Note: A negatlve answer should be Indicated by a minus sign. Do not round Intermedlate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16 . b. If Interest rates suddenly fall by 2 percent Instead, what is the percentage change in the price of these bonds? Note: Do not round Intermedlate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16 . The YTM on a bond is the Interest rate you earn on your Investment If Interest rates don't change. If you actually sell the bond before it matures, your realized return is known as the holding perlod yle/d (HPY). a. Suppose that today you buy an annual coupon bond with a coupon rate of 7 percent for $1,050. The bond has 17 years to maturity and a par value of $1,000. What rate of return do you expect to earn on your Investment? Note: Do not round Intermedlate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16 . b-1. Two years from now, the YTM on your bond has declined by one percentage point, and you decide to sell. What price will your bond sell for? Note: Do not round Intermedlate calculations and round your answer to 2 declmal places, e.g., 32.16. b-2. What Is the HPY on your Investment? Note: Do not round Intermedlate calculatlons and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16