The YTM on the bond is 5% and the coupon rate is 2% with annual coupons. (a) What can you say about the price of the bond? (b) What is its price if it is a 30 -year bond and has a face value of 100,000 ? (c) What is the Holding Period Return (HPR) on the bond after 1 year if the yield to maturity drops to 2% ? Actual bonds are quoted at the bond equivalent yield. The quoted yield is 5% and the coupon rate is 2% with semi-annual coupons. The bond has term to maturity of 30 years. Suppose you don't know the face value. (d) What is its price as a percentage of face value? (e) What is the holding period return on the bond after 6 months if the quoted yield drops to 2% ? (This drop from 5% to 2% is what happened in 2009 .)