Find YTM. A 5% annual coupon bond with face value equal to $1,000 and 7years of maturity remaining, is selling in the bond market for $1,020. What is the required rate of return of the marginal investor in this bond? In other words, what is the YTM? IR Risks: Consider the following two bonds: A and B, both 7% (annual) coupon bonds with Face Value = $1,000. Bond A matures in 3 years and bond B matures in 8 years. Investors have the same required return for either bond A or B. Answer the following multiple-choice question: Given a sudden decline in bond investors' required returns... a) The percentage change in bond A's price exceeds the percentage change in bond B's price b) The percentage change in bond B's price exceeds the percentage change in bond A's price c) The percentage change in bond A's price is the same as the percentage change in bond B's price d) None of the above Consider the following two bonds, A and B. Bond Ais a 7% (annual) coupon bonds with Face Value = $1,000. Bond B is a zero coupon bond. Both Bonds A and B mature in 5 years. Investors have the same required return for either Bond A or B. Answer the following multiple-choice question: Given a sudden decline in bond investors required returns... a) The percentage change in bond A's price exceeds the percentage change in bond B's price b) The percentage change in bond B's price exceeds the percentage change in bond A's price c) The percentage change in bond A's price is the same as the percentage change in bond B's price d) None of the above