QUESTION 4. [(a. +b. + C. = 4 + 4 + 4 = 12 Marks) (No REC'NS)] A zero coupon bond with a face value of $100,000 and due to mature in 5 years from the present time, is currently selling for $73,504.26. REQUIRED: Answer each of following 3 part-questions (a., b. and c.) as percentages, correct to 2 decimal places. What is the yield to maturity (the YTM - expressed as a % per annum) of the above bond? b. What will be the yield to maturity if the bond price immediately falls to $72,648.38? c. If the expected inflation rate over the next 5 years is 2.50% per annum, what will be the real rates of return (or real YTMs) under each of the alternatives a. and b. above