Problem II(Bonds) (12 Points) You purc hase a U.S. 696, 20-year bond with a face value of $100 at a price of 80 1. What is the duration of the bond? 2. What is the current yield on the bond? 3. What is the yield to maturity on the bond? 4. Why is the current yield less than the yield to maturity? 5. If you sell the bond after 8 years at a price of 90 what is your holding period yield ? 6. What is your realized compound yield if you held the bond to maturity? Assume you are able to reinvest all the coupons at 4 percent per year