QUESTION 3 A 25-year zero-coupon bond with $1000 par value is selling for $450. What was the annual YTM on that bond, assuming annual compounding? 1.53% 3.22% 3.25% O 1.61% QUESTION 4 You are considering buying the bonds of a very risky company. An annual coupon bond with a $100 face value, a 1-year maturity, and a coupon rate of 22% is selling for $95. You consider the probability that the company will actually survive to pay off the bond is 80%. With a 20% probability, you think that the company will default, in which case you think that you will be able to recover $40. What is the expected return on the bond? 34.32% -7.4% 2.74% O 11.16%