1. Suppose you purchase a 30-year, zero-coupon bond with a yield to maturity of 6%. You hold the bond for five years before selling it.
   1. If the bonds yield to maturity is 6% when you sell it, what is the annualized rate of return of your investment?
   2. If the bonds yield to maturity is 7% when you sell it, what is the annualized rate of return of your investment?
   3. If the bonds yield to maturity is 5% when you sell it, what is the annualized rate of return of your investment?
   4. Even if a bond has no chance of default, is your investment risk free if you plan to sell it before it matures? Explain.