Suppose you purchase a 30-year, zero-coupon bond with a yield to maturity of 7%. You hold the bond for five years before selling it. a. If the bond's yield to maturity is 7% when you sell it, what is the internal rate of return of your investment? b. If the bond's yield to maturity is 8% when you sell it, what is the internal rate of return of your investment? c. If the bond's yield to maturity is 6% when you sell it, what is the internal rate of return of your investment? d. Even if a bond has no chance of default, is your investment risk free if you plan to sell it before it matures? Explain. Note: Assume annual compounding. www a. If the bond's yield to maturity is 7% when you sell it, what is the internal rate of return of your investment? The IRR of your investment if the bond's yield to maturity is 7% when you sell it is%. (Round to two decimal places.) b. If the bond's yield to maturity is 8% when you sell it, what is the internal rate of return of your investment? The IRR of your investment if the bond's yield to maturity is 8% when you sell it is%. (Round to two decimal places.) c. If the bond's yield to maturity is 6% when you sell it, what is the internal rate of return of your investment? The IRR of your investment if the bond's yield to maturity is 6% when you sell it is%. (Round to two decimal places.) d. Even if a bond has no chance of default, is your investment risk free if you plan to sell it before it matures? Explain. (Select the best choice below.) O A. Even without default, if you sell prior to maturity, you are exposed to risk that the YTM may change. O B. Even though the yield to maturity changes, if there is no chance of default, then the bond is risk free. O C. There is always a chance of default, so every bond has risk. OD. If there is no chance of default, the investment is risk free no matter when you sell it