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Q4 A hedge fund believes that the price of Brent oil and that of WTI oil tend to follow a struct linear relationship. When Brent is more expensive than the ratio would indicate, the hedge fund sells Brent and buys WTI, and buys Brent and sells WTI when the prices go the over way. When considering the population of its monthly returns, what can you say about its distribution? Q5 A bond with maturity 10 years and par value of $1,000 pays semi- annual coupons and sells for $1,200. Its yield to maturity is 4% and its coupon rate is 5%, annualized using the bond convention. What can you say about the bond's current yield? (No calculation needed)