I. Swanson, Inc. bonds have a 12% coupon rate with semi-annual coupon payments. They have 22 years to maturity and a par value of $1,000. Your required rate of return is 10%. Suppose you decide to buy the bond, and immediately afterwards interest rates drop by 0.5%. How much value has the bond gained or lost? (Hint: find the price of the bond before and after the change in interest rates.) a. Loss of $41.99 b. Gain of $41.99 c. Gain of $52.37 d. Gain of $63.84 2. Bond prices and interest rates are related a)Inversely Positively c. Linearly d. Exponentially 3. SWH Corporation issued bonds on January 1, 2004. The bonds had a coupon rate of 7.5%, with interest paid semiannually. The face value of the bonds is $1,000 and the bonds mature on January 1, 2024. What is the yield to maturity for an SWH Corporation bond on January 1, 2015 if the market price of the bond on that date is $920? a. 5.60% b. 6.73% c. 8.81% at 161 243-6 (310.50% p +1000((1.6%2 1 of 5