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2. (7 points) If you purchase a 5-year, zero-coupon bond for $691.72. a. (4 pts) How much could it be sold for 3 years

2. (7 points) If you purchase a 5-year, zero-coupon bond for ( $ 691.72 ). a. (4 pts) How much could it be sold for 3 year

2. (7 points) If you purchase a 5-year, zero-coupon bond for $691.72. a. (4 pts) How much could it be sold for 3 years later if interest rates have remained stable? b. (3pts) How much could it be sold for 3 years later if interest rates increase by 2%? Why is your answer lower than your answer in part a?

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