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What is the bond's yield to maturiyl What is the current yield of the bond? 3. An Investor purchased each of the following bonds at

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What is the bond's yield to maturiyl What is the current yield of the bond? 3. An Investor purchased each of the following bonds at a yield to maturity of 5% lrmnediately after she purchased the bonds, interest rates fell to 7% What is the percentage change in the price of each bond after the decline in interest rates? (Assume semiannual compounding) Bond type Price at 8% YTM Price at 7% YTM Percentage 10year 10% coupon 11 10-year zero coupon 4. A government bond that matures in 10 years has a yield of 6% A 10-year rporate bond has a yield of 9%. Assume that the liquidity prmam on the corporate bond is 0.5%, what is the default risk premium on the corporate bond? ENG 9P

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