Question 4 Consider a bond that has a maturity of 4 years, coupon rate=8%, and a face value of $1,000. Coupons are paid annually. The spot rates when you buy the bond are ri=5%, r2=5.2%, r3=5.5%, r4=6%. a. What is the price of the bond at time=0? b. Write down the equation that expresses the price in terms of yield to maturity (YTM) at time 0 and the cash flows of the bond. Do not solve for the YTM. c. Suppose in 1 year, the yield to maturity changes and is now 4%. What is the price of the bond at t=1 immediately after you receive the first coupon payment. d. What is the rate of return on this bond between 0 and 17 You will want to use the prices you have calculated at time 0 and time 1 to do this