1. (5 pts) The following treasury securities are traded in the market. The coupons are paid annually. Bond A Bond C Bond B 3 1 Maturity (year) Annual coupon rate Face value ($) 3 20% 0% 10% 100 100 100 105.02 Price ($) 95.24 81.42 (a) (3 pts) Find the short rates ro, f1, and r2. (b) (2 pts) Find the short rates ro, and r, one year from now. Assume the expectation dynamics. 1. (5 pts) The following treasury securities are traded in the market. The coupons are paid annually. Bond A Bond C Bond B 3 1 Maturity (year) Annual coupon rate Face value ($) 3 20% 0% 10% 100 100 100 105.02 Price ($) 95.24 81.42 (a) (3 pts) Find the short rates ro, f1, and r2. (b) (2 pts) Find the short rates ro, and r, one year from now. Assume the expectation dynamics