Question 1 An investor purchases a nine-year, 7% annual coupon payment bond at a price equal to par value. After the bond is purchased and before the first coupon is received, interest rates increase to 8%. The investor sells the bond after five years. Assume that interest rates remain unchanged at 8% over the five-year holding period. a. Per 100 of par value, what is the future value of the reinvested coupon payments at the end of the holding period? b. What is the capital gain/loss per 100 of par value resulting from the sale of the bond at the end of the five-year holding period? c. Assuming that all coupons are reinvested over the holding period, what is the investor's five-year horizon yield