Question 2 (20 marks) Suppose you want to buy a 8-year, 12%, $1000 bond (semi-annual coupon) today and the interest rate is 10%. If the current market price of this bond $1010, should you buy it? Explain briefly. b. Suppose you have purchased this bond paying the PV of this bond. After holding it for 1 year, the interest rate drops to 8%. What are the current yield, capital gains yield and the total yield