Question 11 (15 points) Consider a 3-year risk-free bond, which pays annual coupons. The coupon rate is 2.5% and the face value is $500. The bond is issued at time t=0, pays coupons at time t=1,2,3, and pays out the face value at time t=3. You purchase the bond at time t=0. While holding the bond, you do not reinvest the coupon payments. a) (5 points) If the yield to maturity (YTM) of the bond was 2.25% what was the price you paid for the bond at t=0? b) (10 points) Assuming the yield to maturity (YTM) remains constant at 2.25% over time, approximately plot what will happen to the price of the bond over time