1) The plain vanilla bond A has a nominal value of EUR 1000, 10 years maturity, pays a coupon rate of 8.26% due annually

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1) The plain vanilla bond A has a nominal value of EUR 1000, 10
years maturity, pays a coupon rate of 8.26% due annually and has a
yield to maturity of 9%. An investor, with an investment time
horizon of 7 years, bought it with the aim to obtain a rate of
return equal to that yield. However, immediately after its
purchase, interest rates increased 10 basis points, having
continued so until the end of that investment time horizon.
Considering these conditions, answer the following questions:
a) At what price did the investor buy the bond?
b) At the end of the investment time horizon, what was the
market price of that bond?
c) What is the total interest from coupons obtained during the
period?
d) Calculate the receipts obtained by the investor at the end of
his/her investment time horizon.
e) What was the realized rate of return obtained by the
investor?