QUESTION 2 A six-year corporate bond has a coupon rate of 11%, a face value of $1,000, and a yield to maturity of 14%. Assume annual interest payments. (i) (3 pts) What is the current price? (ii) (3 pts) What is the duration (Macaulays)? (iii) (2 pts) Compare this bond to a four-year zero coupon bond. Which has more interest-rate risk (which bond price changes more given a 1 percentage point change in the interest rate)? (iv) (2 pts) Using duration, what is the change in price of the bond if there was a parallel shift in interest rates and rates rose 2 percentage points? (v) (2 pts) What is the true current price if interest rates rose 2 percentage points? (vi) (2 pts) Why are the answers different