Q1. (Show all steps) A J&J Corp. bond carries a coupon rate of 7%, has 9 years until maturity, currently the interest rate is 11 percent, and face value is $1000 (assuming annual coupon payments). a) What is the price of the Bond? If you buy the bound and hold it to maturity what is your rate of return on this investment? Explain, what is your rate of return made of? (No explanations not credit). What is your yield to maturity? b) Is the bond selling at discount or premium? Give the reason then explain why the bond is selling at discount or premium, no explanations not credit. c) If the interest rate decrease to 8% in four years and I decided to sell the bond, what is my Capital Gain Yield? What is my Holding Period Yield? Q1. (Show all steps) A J&J Corp. bond carries a coupon rate of 7%, has 9 years until maturity, currently the interest rate is 11 percent, and face value is $1000 (assuming annual coupon payments). a) What is the price of the Bond? If you buy the bound and hold it to maturity what is your rate of return on this investment? Explain, what is your rate of return made of? (No explanations not credit). What is your yield to maturity? b) Is the bond selling at discount or premium? Give the reason then explain why the bond is selling at discount or premium, no explanations not credit. c) If the interest rate decrease to 8% in four years and I decided to sell the bond, what is my Capital Gain Yield? What is my Holding Period Yield