Homework Ch 15 i Saved Help Save & Exit Submit 19 Check my work 2 a. Assuming that the expectations hypothesis is valid, compute the price of the four-year bond shown below at the end of (i) the first year; (ii) the second year; (iii) the third year; (iv) the fourth year. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 10 points Price of Bond Expected Price Beginning of Year 1 Skipped $ 935.90 2 $ 906.47 eBook 3 $ 837.12 775.39 4 $ Print References b. What is the rate of return of the bond in years 1, 2, 3, and 4? Conclude that the expected return equals the forward rate for each year. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Beginning of Year 1 Expected Rate of Return % % % 2 3 4 % Suppose that today's date is April 15. A bond with a 9.5% coupon paid semiannually every January 15 and July 15 is quoted as selling at an ask price of 101.38. If you buy the bond from a dealer today, what price will you pay for it? (Round your answer to 2 decimal places.) Invoice price Homework Ch 15 i Saved Help Save & Exit Submit 19 Check my work 2 a. Assuming that the expectations hypothesis is valid, compute the price of the four-year bond shown below at the end of (i) the first year; (ii) the second year; (iii) the third year; (iv) the fourth year. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 10 points Price of Bond Expected Price Beginning of Year 1 Skipped $ 935.90 2 $ 906.47 eBook 3 $ 837.12 775.39 4 $ Print References b. What is the rate of return of the bond in years 1, 2, 3, and 4? Conclude that the expected return equals the forward rate for each year. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Beginning of Year 1 Expected Rate of Return % % % 2 3 4 % Suppose that today's date is April 15. A bond with a 9.5% coupon paid semiannually every January 15 and July 15 is quoted as selling at an ask price of 101.38. If you buy the bond from a dealer today, what price will you pay for it? (Round your answer to 2 decimal places.) Invoice price