Question 7 A 10 year Australian government bond was just issued at par with a yield of 4% pa. The fixed coupon payments are semi-annual. The bond has a face value of $1,000. Not yet saved Marked out of 1.00 Two years later, just after the fourth coupon is paid, the yield of the bond decreases to 3.65% pa. Flag question Which of the following statements is NOT correct? a. The bond price is expected to rise by 4% from just after the fourth coupon, to just before the fifth coupon. b. The value of the bond on the maturity date, just before the last coupon payment, will be $1,020 O c. After the fourth coupon is paid, the number of future coupons (T) will be 16. d. The value of the bond on the maturity date, just after payment of the last coupon and face value, will be $0 e. After the fourth coupon is paid, the bond will trade at a premium