You have bought 100 bonds with a face value of $1,000, an annual
coupon rate of 6 percent, a yield to maturity of 8 percent, and 10
years to maturity. Now you are concerned that rates will rise and
the bond value will, therefore, drop. You want to take a short
(sell) position on another bond with face value of $1,000, an
annual coupon rate of 5 percent and a yield to maturity of 7
percent, and 8 years to...