Suppose you purchase a $1,000 face value zero coupon bond today with 20 years until maturity and a yield to maturity of 1% APR with annual compounding. If in one year the yield to maturity is 5%, how much did you gain or lose on this bond? Lose more than $400 Lose between $200 and $400 Lose between $0 and $200 Gain between $0 and $200 Gain between $200 and $400 Gain more than $400 QUESTION 2 A zero coupon bond matures in 9 years, has a face value of $1,000, and currently yields 12% APR with semi-annual compounding. What price should this bond trade at today? Less than $500 Between $500 and $600 Between $600 and $700 Between $700 and $800 More than $800 QUESTION 3 A coupon bond matures in 8 years, has an annual coupon rate of 5% paid semi-annually and a face value of $1,000, and currently yields 6% APR with semiannual compounding. What price should this bond trade at today? Less than $600 Between $600 and $800 Between $800 and $1,000 Between $1000 and $1,200 More than $1,200