Question 1: 8 marks You bought a 5-year annual payment corporate bond with a market price of $1000. The bond pays annual interest of $100, by how much yourbondis mispriced if a) The required rate ofreturn on your investment is 10%? (4 marks) b) The required rate of return on your investment is 12%? (4 marks) Question 2: 8 marks Discuss in depth the effect of Federal Reserve operations/activities below on interest rates level in market (increase or decrease)? Justify your answerin details? a) Open market purchases of securities by the Fed Reserve (4 marks) b) The Federal Reserve Increases Reserve Requirement Ratio (4 marks)