QUANTITATIVE PROBLEMS Irotech Corporation issued a 4-year annual coupon bond 1 years ago. The bond has a Ipon interest rate of 10% and a par value of $1,000. (20 points) a. What was the bond price 1 year ago if the YTM was 9% at issuance? b. What is the bond YTM if you buy the bond for $985 today? c. What are current yield and capital gains yield for the bond during the first year? d. Assume the reinvestment rate drops to 7% for the next s years right after you buy the bond. What is your expected rate of return on the bond? 2 QUANTITATIVE PROBLEMS Microtech Corporation issued a 4-year annual coupon bond 1 years ago. The bond has a coupon interest rate of 10% and a par value of $1,000. (20 points) a. What was the bond price 1 year ago if the YTM was 9% at issuance? b. What is the bond YTM if you buy the bond for $985 today? c. What are current yield and capital gains yield for the bond during the first year? d. Assume the reinvestment rate drops to 7% for the next 3 years right after you buy the bond. What is your expected rate of return on the bond