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Suppose that you are considering investing in a 4-year bond that has a face value of $1,000 and a coupon rate of 5.6%. a.)

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Suppose that you are considering investing in a 4-year bond that has a face value of $1,000 and a coupon rate of 5.6%. a.) If the market interest rate on similar bonds is 5.6%, the price of the bond is $ 1000. (Round your response to the nearest cent.) The bond's current yield is 5.6 %. (Round your response to two decimal places.) b.) Suppose that you purchase the bond, and the next day the market interest rate on similar bonds falls to 4.6%. The price of the bond will be $ 1035.79. (Round your response to the nearest cent.) The current yield will be 5.41 %. (Round your response to two decimal places.) c.) Now suppose that 1 year has gone by since you bought the bond, and you have received the first coupon payment. The market interest rate on similar bonds is still 4.6%. At an interest rate of 4.6%, the price an investor is willing to pay for the bond is $ . (Round your response to the nearest cent.)

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