2. A bond has a $ 1,900 par value, 10 years to maturity, and 7% annual coupon and sells for $1,800 What is its YTM? Assume YTM remains constant for the next 3 years. What will be its price 3 years from now? a) 7.78 & $5798.23 respectively b) 4.34 & $1826.15 respectively c) 7.78 & $ 1949.17 respectively d) 7.78 & $1822.36 respectively 3. The changes in interest rate can be helpful or hurtful to bondholders. When there is an increase in interest rate, the bond holders are hurt; How are the bondholders hurt when the interest rate decreases. Please explain how this happens (bondholders being hurt when the interest rate decrease).