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suppose right after you purchase the bond in problem 21 (bond details: YTM 5%, 20 years, face value of $1000, 7%coupon rate, and bond price

suppose right after you purchase the bond in problem 21 (bond details: YTM 5%, 20 years, face value of $1000, 7%coupon rate, and bond price $1249), a new variant of covid-19 begins to spread over the country and the default probability of the firm increases sharply. Select the yield to maturity from the possibilities: either 3% or 10% (note: only one of them is likely to happen and correct) and calculate the gain or loss on your bond Information from problem 21 is (bond details: YTM 5%, 20 years, face value of $1000, 7%coupon rate, and bond price $1249)

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