Question 7 A bond is currently trading at $1,020.70 with the face value of $1,000. It has 20 years to maturity. The yield to maturity is 12% per year. The bond pays quarterly coupons Question a) What should be the annualized bond's coupon rate? Question b) After one year, YTM increases by 1% point, then what is the price of the bond after one year? O a) Coupon rate = 12.27% b) Bond price = $948.79 a) Coupon rate = 12.79% b) Bond price = $1,015.01 O a) Coupon rate = 12.27% b) Bond price = $959.15 O a) Coupon rate = 12.79% b) Bond price = $1,018.01