Question 1 1 pts Use the bond term's below to answer the question Maturity 7 years Coupon Rate 5% Face value $1,000 Annual Coupons The bond is callable in year 4 The call price is $1,050 The interest rate in period 4 is 2% If the firm calls back the bond, how much does the firm save or lose? 0-$34.78 O -$36.52 -$39.99 $34.78 $36.52 $39.99 Question 2 1 pts Use the bond term's below to answer the question Maturity 6 years Coupon Rate 3.50% Face value $1,000 Annual Coupons The bond is callable in year 3 The call price is $1,040 The interest rate in period 3 is 3.00% If the firm calls back the bond, how much does the firm save or lose? $28.32 O $25.86 - $28.32 -$25.86 O-$27.15 O $27.15 Question 3 1 pts Given the information in the table, answer the question. If the YTM remains constant, what is dollar capital gains or loss between periods 5 and 6? Maturity 6 years Face Value $1,000 Coupon Rate 6.00% Coupon Period Annual YTM 5.00% O -$10.48 O -$7.46 0-$9.52 -$8.66 Question 4 1 pts Term (years) Today's Rate 1 1.00% 2 1.75% 3 2.00% Based on the expectations hypothesis, what does the market expect the 1 year rate in 1 year to be? 2.38% 2.51% 2.50% 3%