a) In the previous section of this problem set, explain why the calculated YTM of a bond could be a bad characterization (inaccurate) of the rate of return of a bond investment. Put your response in the box below: Hint (1): how was YTM calculated from the cash flows of the bond? Hint (3): see lecture notes on the concept of "yield illusion" | Hint (2): what assumptions were made on this TVM-based calculation? b) If YTM is a potentially bad method of calculation of a bond's rate of return, what other method of calculation is more appropriate? And why is this method always correct (accurate)? Put your response in the box below: Hint see lecture notes on Realized Compound Yield (RCY) PS: RCY is also termed as Horizon Yield (HY) and Total Return /TR] in other textbooks. c) Are there any bad assumptions made in the calculation of the YTM of zero-coupon bonds? Hint [1]: any incorrect TVM assumptions made on it's bond's cash flows? Hint (2]: any "yield illusion problems? a) In the previous section of this problem set, explain why the calculated YTM of a bond could be a bad characterization (inaccurate) of the rate of return of a bond investment. Put your response in the box below: Hint (1): how was YTM calculated from the cash flows of the bond? Hint (3): see lecture notes on the concept of "yield illusion" | Hint (2): what assumptions were made on this TVM-based calculation? b) If YTM is a potentially bad method of calculation of a bond's rate of return, what other method of calculation is more appropriate? And why is this method always correct (accurate)? Put your response in the box below: Hint see lecture notes on Realized Compound Yield (RCY) PS: RCY is also termed as Horizon Yield (HY) and Total Return /TR] in other textbooks. c) Are there any bad assumptions made in the calculation of the YTM of zero-coupon bonds? Hint [1]: any incorrect TVM assumptions made on it's bond's cash flows? Hint (2]: any "yield illusion problems