Question 4 Gustavo Fring, a seasoned businessman, has a lot of liquidity (cash) at his disposal. Accordingly, he decides to invest some of his earnings in a fixed income security. He has two Bonds to choose from. Each has a maturity of 5 years, a par value of $500, and a yield to maturity of 15%. Bond A has a coupon interest rate of 5% paid annually. Bond B has a coupon interest rate of 10% paid annually a. Calculate the price of both the bonds. (2 points) b. Gustavo will be investing 10,000 USD. Approximately how many of each of the two bonds could Gustavo purchase? (2 points) c. Calculate the yearly interest income of each bond based on its coupon rate and the number of bonds that Gustavo could buy with his $10,000. (2 points) d. Assume that Gustavo will reinvest the interest payments as they are paid (at the end of each year) and that his rate of return on the reinvestment is only 8%. For each bond, calculate the value of the principal payment plus the value of Gustavo's reinvestment account at the end of the 5 years. (2 points)