1) Assume that the government bonds with differently maturities and coupon rates are given as follow: 1 3 4 6 Maturity Price Coupon rate 99.10 1% 2 99.50 1.5% 100.00 2% 99.50 2% 5 99.10 3% 98.00 3% A) Find prices of $1 in years 1 through 6. B) Find all the future interest rate under certainty between years 1 and 2, years 2and 3 etc. all the way to year 6. C) What would be your forecast of HPR the 6 year bond between year 2 and 3 ? D) There is a project that you are contemplating to pursue with the following sure cash flows: 2 3 4 6 year Cash flow 1 -100 5 100 200 100 200 200 How much is the maximum that you are willing to invest for this project? 1) Assume that the government bonds with differently maturities and coupon rates are given as follow: 1 3 4 6 Maturity Price Coupon rate 99.10 1% 2 99.50 1.5% 100.00 2% 99.50 2% 5 99.10 3% 98.00 3% A) Find prices of $1 in years 1 through 6. B) Find all the future interest rate under certainty between years 1 and 2, years 2and 3 etc. all the way to year 6. C) What would be your forecast of HPR the 6 year bond between year 2 and 3 ? D) There is a project that you are contemplating to pursue with the following sure cash flows: 2 3 4 6 year Cash flow 1 -100 5 100 200 100 200 200 How much is the maximum that you are willing to invest for this project