Provide the explanation of bond price dynamics and yield changes in case of following market events. a) Consider 5-years bond with face value of $1000 and coupon rate of 7% paid semiannually, which is traded for a price of $1035 one full year after issue date. Assume that two coupon payments were done already during the year passed. Calculate its YTM. b) Assume the above-mentioned note has a high credit rating with risk premium of 1.0 pp. Quote risk-free interest rate for 4 years investment on this market? c) Assume that two years after the issue date Central Bank increases its key interest rate, and risk-free rate for securities of similar maturity moves to 7%. Calculate the new bond price. What is the bond now called? Calculate its YTM. d) Assume you invested in this bond at the price and yield indicated in paragraph a of the task. What would be your actions in the case of an event in paragraph c