Three years age sells for $1,102, answer the following? issued 10-year internatinal bonds that pay US investors 11% semiannually. Assume that the bond has a $1,000-par-value. If the bond currently a....

Extracted text: Three years age sells for $1,102, answer the following? issued 10-year internatinal bonds that pay US investors 11% semiannually. Assume that the bond has a $1,000-par-value. If the bond currently a. The yield to maturity on this bond is %. (Round to 2 decimal places.) b. If you are expecting the Federal Reserve (US central bank) to lower interest rates in the near future and you want to gain profit by speculating on a bond, will you buy or sell this bond? Explain. (Select the best answer below.) O A. You should not buy the bond. The relationship between bond price and bond yield is direct. If the interest rate drops in the near future, the bond price will decrease. O B. You should buy the bond. The relationship between bond price and bond yield is inverse. If the interest rate drops in the near future, the bond price will increase.