problem 9& 10

8. Assume Clinton has a $1000 3 year coupon bond with 10% coupon and the expected interest rate is 3%. What is the price of the bond? 9. Assume Clinton keeps the bond for 1 year and sells it to Kim. The expected interest rate is now 5%. What are the capital gains/losses for Clinton? 10. Assume that Kim keeps the bond for 1 year and sells it to Steve. The expected interest rate is now 8%. What are the capital gains/losses for Kim