(1 point) Consider a $1000 par value bond that pays 4 semi-annual coupons at a nominal rate of 4% compounded semi- annually. Suppose that the bond was purchased for $985.33. (a) Use the method of averages to approximate the effective yield rate compounded semi-annually. State the final result as a percent to 4 decimal places. y(2) % compounded semi-annually (b) Evaluate each of the following using the rounded result from part (a): Price using the Method of Averages yield = $ per Rate of Change of Price (to 2 decimals) using the Method of Averages yield = $ % change (Hint: Differentiate the bond price w.r.t. the yield rate y(2).] (c) Use the results in parts (a) and (b) to complete 1 iteration of Newton's method to approximate the effective yield rate compounded semi-annually. State the final result as a percent to 4 decimal places. y(2) % compounded semi-annually (1 point) Consider a $1000 par value bond that pays 4 semi-annual coupons at a nominal rate of 4% compounded semi- annually. Suppose that the bond was purchased for $985.33. (a) Use the method of averages to approximate the effective yield rate compounded semi-annually. State the final result as a percent to 4 decimal places. y(2) % compounded semi-annually (b) Evaluate each of the following using the rounded result from part (a): Price using the Method of Averages yield = $ per Rate of Change of Price (to 2 decimals) using the Method of Averages yield = $ % change (Hint: Differentiate the bond price w.r.t. the yield rate y(2).] (c) Use the results in parts (a) and (b) to complete 1 iteration of Newton's method to approximate the effective yield rate compounded semi-annually. State the final result as a percent to 4 decimal places. y(2) % compounded semi-annually