Question 4 [12 points] Fiona Trail is a recent retiree who is interested in investing some of her savings in corporate bonds. Her financial planner has suggested she invest in bond A, which has 5% coupon rate, paid semi-annually, mature in 15 years, and has a $1000 face value. Bond A has a current yield to maturity of 7.5% a) Without calculating the price of the bond, indicate whether the bond is trading at a premium, at a discount, or at par. Explain your reason. In other words, use concepts to justify your conclusion, without actually calculating the bond price here. I b) Calculate the price of the bond. c) If two years after Fiona purchased the bond, the yield of maturity drops to 6.5%, what will be the price of the bond immediately BEFORE its 4th coupon payment? d) If two years after Fiona purchased the bond, the yield of maturity drops to 6.5%, what will be the price of the bond immediately AFTER its 4th coupon payment? c) Which of these four bond has the lowest interest rate risk? Explain Bond A has 5% coupon rate, paid semi-annually, mature in 15 years, and has a $1000 face value. Bond B has 9% coupon rate, paid semi-annually, mature in 9 years, and has a $1000 face value. Bond C has 7% coupon rate, paid semi-annually, mature in 9 years, and has a $1000 face value. Bond D has 7% coupon rate, paid semi-annually, mature in 15 years, and has a $1000 face value