Q1. You own a bond that pays $ 100 in annual interest, with a $1,000 par value. It matures in 15 years. Your required rate of return is 12%. a) Calculate the value of the bond. (5 marks) b) Calculate the value of the bond if your required rate of return change and (1) increases to 15% and (2) decreases to 8%? (10 marks) c) Explain the implication of your answer in part b. (5 marks) d) Assume that the bond matures in 5 years instead of 15 years. Recompute your answers in part b. (10 marks) e) Explain the implication of your answer in part d. (5 marks) Q2. You own a bond that has a par value of $ 1,000 and matures in 5 years. It pays a 9% annual coupon rate. The bond currently sells for $ 1,200. What is the bond's expected rate of return