FREE RESPONSE: Please write your final answer to each part in the space provided. SHOW YOUR WORK wherever you like, but make sure it is clearly labeled and legible. 11. ( 18 pts) Consider two bonds with identical face value of $100 that pay semi-annual coupons. You have the following inform ation: a) Compute the price of bonds A and B Suppose that you have $100,000 that you invest in bonds today. Six months later, bond A. trades for $103, and bond B trades for $97. b) Compute your holding period return (HPR) (month 0 to month 6 ) if you invested everything in A. Compute your HPR if you invested everything in B. (You are not required to calculate the annualized HPR in this question) c) Compute your HPR if you invested 40% of the $100,000 in bond A, and 60% in bond B. Assume you can buy or sell fractions of a bond, if necessary