Question 4 10 pts You buy a bond issued by Terlingua Oil & Gas Exploration Corp. The coupon rate is 8%, and coupons are paid semi-annually. Par of your bond is $10,000. The bond matures in 12 years. Your price today on the bond is $11,000. In six months, the YTM on the bond has fallen by 1%. You collect the coupon payment and sell the bond. What is your effective annual rate of return? Hint: see Example 7 in the Lecture. -1.00% 8.00% 6.88% 11.42% 24.14% Question 5 8 pts Suppose that you invest in a two-year Treasury bond with a coupon rate of 6% and $1,000 par. Suppose that you buy this bond at a price of exactly $1,000. You intend to hold this bond to maturity and reinvest the coupons until the bond matures. You expect to reinvest the coupons in an account that pays an APR of 1.43%, with semi-annual compounding. What is the effective annual rate of return on your investment? Hint: see Example 8 in the Lecture. Do not round at intermediate steps in your calculation. Express your answer in percent. Round to three decimal places. Do not type the % symbol. If the return is negative, then include a minus sign. Question 6 7 pts You have the following historical annual total returns on Terlingua Oil & Gas Exploration: Annual total return Year (%) 2001 2002 2003 2004 2005 - 1% 4% 14% 14% 2% 10% 17% -7% 9% 3% 2006 2007 2008 2009 2010 Calculate the sample standard deviation of annual return. Do not round at intermediate steps in your calculation. Express your answer in percent. Round to two decimal places. Do not type the % symbol