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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 5.7% a) If

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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 5.7% a) If the market interest rate on similar bonds is 5.7%, the price of the bond is $1,000 (Round your response to the nearest cent) The bond's current yield is 57 % (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 4.7% The price of the bond will be $1035.71 (Round your response to the nearest cent) The current yield will be 5.5% (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 47% At an interest rate of 4.7%, the price an investor is willing to pay for the bond is 5 (Round your response to the nearest cent)

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