Flight-to-safety, is a financial market phenomenon occurring when investors sell what they perceive to be higher-risk investments and purchase safer investments, such as gold and US treasury bonds (Wikipedia). When you first heard the outbreak of COVID-19 on Jan 22, 2020, in fear of the spreading out the fatal virus, you decide to purchase 10-year US treasury note. YTM of available 10-year US treasury note was around 1.70% (annualized rate), with coupon rate of 1.12% (annualized rate). Coupon is paid every 6 months. 6 months later the YTM of the same bond drops to 0.64% (right before the first coupon payment). Assuming the maturity date of the bond you invested is Jan 22, 2030. With the information above, please answer the following four questions. Q1: Before doing any calculation, please state if the following statement is true or not. At the time of the purchase, the bond is priced at a premium. True False QUESTION 18 Q2: What is the bond price when you invested? (hint: calculate half-year discount rate and coupon payment first. Face value of US 10-year treasury note is $1000.)