Question: Please help me answer this multiple part question. A.) Assume you can buy a pure discount bond today at a price of $795. The bond

Please help me answer this multiple part question.

A.) Assume you can buy a pure discount bond today at a price of $795. The bond matures in 5 years.

What would be the percentage capital gain over the life of the bond?

B.) Given the Term Structure below:

1 year = 3.1%

2 years = 4.6%

3 years = 6%

4 years = 6.5%

5 years = 7.6%

Based on the expectations hypothesis, what does the market expect the 1 year rate in 4 year to be?

C.) As with most bonds, consider a bond with a face value of $1,000. The bond's maturity is 7 years, the coupon rate is 9% paid semiannually, and the market yield (discount rate) is 19%.

What is the estimated value of this bond today?

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